NY State Senate Bill 2017-S2096

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 25, 2018	print number 2096d
Jan 25, 2018	amend and recommit to veterans, homeland security and military affairs
Jan 03, 2018	referred to veterans, homeland security and military affairs
Jun 07, 2017	print number 2096c
Jun 07, 2017	amend and recommit to finance
May 02, 2017	print number 2096b
May 02, 2017	amend (t) and recommit to finance
Apr 25, 2017	print number 2096a
Apr 25, 2017	amend and recommit to finance
Mar 27, 2017	reported and committed to finance
Jan 12, 2017	referred to veterans, homeland security and military affairs

co-Sponsors

View additional co-sponsors

2017-S2096 - Details

Current Committee:: Senate Veterans, Homeland Security And Military Affairs
Law Section:: Military Law
Laws Affected:: Add §216-a, Art 14 §§400 - 405, Mil L; add §82, St Fin L; amd §5205, CPLR; amd §§612 & 658, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S8148

2017-S2096 - Summary

Establishes the "New York's Own combat veterans healthcare choice program act" to establish tax free savings accounts to pay the healthcare costs of combat veterans on active duty during Operation Enduring Freedom or Operation Iraqi Freedom, until covered by the federal government; and directs the division of military and naval affairs to establish a registry of Afghanistan and Iraq veterans.

2017-S2096 - Sponsor Memo

                                 BILL NUMBER:  S2096

 TITLE OF BILL :

An act to amend the military law, the state finance law, the civil
practice law and rules and the tax law, in relation to establishing
"New York's Own combat veterans healthcare choice program act"

 PURPOSE :

This bill would authorize the creation of healthcare savings accounts
for New York resident combat veterans of the organized militia of the
State, who while on State Orders in a combat zone during the period
September 2011 to date, suffered injuries or disability, and who, upon
90 days of making application to the US Veterans Administration for
healthcare services related to those injuries or disability, have
still not received primary care or an appointment for primary care,
for those injuries or disability.

 SUMMARY OF PROVISIONS :

The health care savings accounts will be funded: 1) for a period of up
to three years by New York State in the amount of $5,000 per year;
and, 2) by State tax deductible contributions from the combat veteran
not to exceed $5,000 per year. The State's contributions to the
soldier's health care savings accounts will terminate upon the earlier

of: a) the combat veteran securing services from the VA for the
injuries or disability sustained in a combat zone; or, b) three years
after establishment of the account.

All "Qualified Expenditures" from the account for healthcare would
likewise be New York State tax deductible and would specifically
include drug and alcohol rehabilitation as well as PTSD. The combat
veteran has complete authority to choose the healthcare provider so
long as they are licensed by New York State. Much like the College
Savers program, the accounts would be administered by the State
Comptroller and unexpended funds would earn interest while on account

 JUSTIFICATION :

The healthcare savings account program is patterned on the very
successful "New York 529 College Savers" program and will provide New
York resident members of the organized militia who deployed with a New
York unit to a combat zone, a bridge to much needed healthcare when,
through no fault of the service member, they have been unable to
secure primary care, or an appointment with a US Veterans
Administration primary care physician on a timely basis.

The recently released report of the General Accounting Office noted
that the Veterans Choice Program created by Congress in 2014 has
failed to reduce the number of veterans waiting more than 30 days to
get an appointment for primary care at either a VA facility or with
one of the Veterans Choice providers as the law requires. In fact,
according to the GAO report there are 71,000 more veterans waiting
more than the 30 days than there was in May of 2015.

Among the hundreds of thousands of veterans waiting longer than 30
days are hundreds of New York resident Air and Army National Guard
combat veterans who sustained injuries or disabilities in a combat
zone on orders from The Governor and Adjutant General; and who,
despite efforts to secure primary care from the US Veterans
Administration, have been unable to schedule appointments: This
program will ensure they have healthcare until picked up by the
Veterans Administration.


The Governor and Adjutant General have issued over 14,300 Orders to
members of the Organized Militia of New York to serve in certified
combat zones since September 11, 2001. An undetermined number of these
orders were issued to service members who had previously deployed to a
combat zone.

While the Division of Military and Naval Affairs does not certify
disability ratings nor does it have any mechanism for tracking the
applications of personnel returning from a combat zone who have made
application to US Veterans Administration for healthcare services,
this bill would create a mechanism for New York State to take of its
own combat veterans for injuries or disability suffered while on State
Orders in a Combat Zone if the US Veterans Administration has failed
to provide the service member with an appointment with a primary care
physician within 90 days of requesting one.

 LEGISLATIVE HISTORY :

2016: S.8148

 FISCAL IMPLICATIONS :

It is not possible to determine the total annual cost of this bill
since the number of effected New York resident combat veterans who
would qualify cannot be estimated. However, the total number of combat
deployments is 14,353 and among this universe is a number of service
members with multiple deployments and still others who are not
residents of New York State. Available records indicate that the
percentage of all civilian veterans with a VA disability is just 16.6%
and the number of combat veterans applying for VA disability has
ranged from 8% for Operation Enduring Freedom to a high of 30% for
Operation Iraqi Freedom. Since it is likely that a number of New
York's combat injured or disabled soldiers and airmen have succeeded
in securing appointments with a VA primary care physicians, the number
qualified applicants is projected to be not more than 1,500.

Thus, the maximum fiscal impact would not exceed $7,500,000 per year
over the first three years. Since the benefit terminates after the
earlier of three years; or the VA's assumption of responsibility for
primary care, it is highly unlikely that fiscal impact will ever reach
this sum.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning after December 31, 2017.

2017-S2096 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2096
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sens.  MURPHY,  CROCI, LARKIN, ORTT, CARLUCCI, GALLIVAN,
   GOLDEN, O'MARA, RANZENHOFER, SERINO, SEWARD -- read twice and  ordered
   printed,  and  when printed to be committed to the Committee on Veter-
   ans, Homeland Security and Military Affairs
 
 AN ACT to amend the military law, the state finance law, the civil prac-
   tice law and rules and the tax law, in relation to  establishing  "New
   York's Own combat veterans healthcare choice program act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York's Own combat veterans healthcare choice program act".
   § 2. The military law is amended by adding a new section 216-a to read
 as follows:
   § 216-A. MEDICAL CARE WHEN INJURED OR DISABLED IN COMBAT ZONE.  1. ANY
 NEW  YORK  RESIDENT  MEMBER  OF THE ORGANIZED MILITIA WHO SHALL, WHEN ON
 ACTIVE DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF THE  UNITED
 STATES DURING OPERATION ENDURING FREEDOM OR OPERATION IRAQI FREEDOM, FOR
 THREE  HUNDRED  SIXTY DAYS OR MORE ON ORDERS ISSUED BY THE GOVERNOR, THE
 COMMANDING GENERAL OF THE NEW YORK ARMY NATIONAL GUARD,  THE  COMMANDING
 OFFICER  OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER OF
 THE NAVAL MILITIA, RECEIVE ANY WOUND OR INJURY, OR INCUR OR CONTRACT ANY
 DISABILITY OR DISEASE, BY REASON OF SUCH  DUTY,  OR  WHO  SHALL  WITHOUT
 FAULT  OR  NEGLECT  ON  HIS  OR  HER  PART  BE WOUNDED OR DISABLED WHILE
 PERFORMING ANY LAWFULLY ORDERED DUTY WHILE IN SUCH A COMBAT ZONE,  WHICH
 SHALL  INCAPACITATE  HIM  OR HER, AND WHO IS UNABLE TO RECEIVE TIMELY OR
 ADEQUATE HEALTHCARE SERVICES FROM THE  FEDERAL  DEPARTMENT  OF  VETERANS
 AFFAIRS WITHIN NINETY DAYS OF MAKING APPLICATION FOR SUCH SERVICES SHALL
 RECEIVE  THE PAYMENT INTO SUCH SERVICE MEMBER'S NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE ACCOUNT ESTABLISHED PURSUANT TO  ARTICLE  FOURTEEN  OF
 THIS  CHAPTER  FOR  CARE  AND MEDICAL TREATMENT IF AUTHORITY THEREFOR IS
 GRANTED BY THE ADJUTANT GENERAL, EXPENSES FOR SUCH    CARE  AND  MEDICAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02315-01-7

 S. 2096                             2
 
 ATTENDANCE  AS ARE NECESSARY FOR THE APPROPRIATE TREATMENT OF THE WOUND,
 INJURY, DISEASE OR DISABILITY MAY BE  PAID  FROM  THE  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE  ACCOUNT AS PROVIDED IN ARTICLE FOURTEEN OF
 THIS  CHAPTER UNTIL TREATMENT IS PROVIDED BY THE FEDERAL VETERANS ADMIN-
 ISTRATION, OR THE INCAPACITY RESULTING FROM SUCH WOUND, INJURY,  DISEASE
 OR  DISABILITY  CANNOT  BE MATERIALLY IMPROVED BY FURTHER CARE OR TREAT-
 MENT. THE DETERMINATION OF WHETHER SUCH INJURY OR DISEASE  WAS  INCURRED
 WHILE  PERFORMING  SUCH  LAWFULLY  ORDERED ACTIVE DUTY IN A COMBAT ZONE,
 DESIGNATED BY THE PRESIDENT OF THE UNITED STATES DURING OPERATION ENDUR-
 ING FREEDOM OR OPERATION IRAQI FREEDOM, SHALL BE IN ACCORDANCE WITH THIS
 SECTION AND SUCH REGULATIONS AS MAY BE PRESCRIBED BY THE ADJUTANT GENER-
 AL.
   2. IF CARE FOR SUCH A SERVICE  MEMBER  IS  APPROVED  BY  THE  ADJUTANT
 GENERAL  AND  THE  SERVICE  MEMBER  SHALL HAVE CREATED A NEW YORK COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT IN ACCORDANCE WITH  ARTICLE  FOURTEEN
 OF THIS CHAPTER, THE STATE SHALL MAKE A PAYMENT OF FIVE THOUSAND DOLLARS
 INTO  SUCH  SERVICE  MEMBER'S COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT.
 SUCH PAYMENT SHALL NOT EXCEED FIVE THOUSAND DOLLARS IN ANY CALENDAR YEAR
 AND SHALL BE DISCONTINUED UPON THE SERVICE MEMBER  RECEIVING  CARE  FROM
 THE FEDERAL DEPARTMENT OF VETERANS AFFAIRS FOR THE INJURIES OR DISABILI-
 TIES SUSTAINED WHILE IN QUALIFIED STATE SERVICE.
   3.  NONE  OF  THE BENEFITS PROVIDED BY SUBDIVISION ONE OF THIS SECTION
 SHALL BE PAID OR ALLOWED UNLESS A CLAIM THEREFOR HAS BEEN  PRESENTED  TO
 THE  ADJUTANT GENERAL WITHIN THREE YEARS AFTER THE DATE WHEN SUCH WOUND,
 INJURY, DISEASE OR DISABILITY WAS INCURRED OR CONTRACTED.  NONE  OF  THE
 BENEFITS  PROVIDED  BY  SUBDIVISION ONE OF THIS SECTION SHALL BE PAID OR
 ALLOWED BY THE STATE FOR ANY PERIOD DURING  WHICH  SUCH  MEMBER  OF  THE
 ORGANIZED  MILITIA  IS  ENTITLED TO RECEIVE THE SAME AS A CHARGE AGAINST
 FEDERAL FUNDS.
   4. A. WHERE A CLAIM IS MADE UNDER THIS SECTION  THE  ADJUTANT  GENERAL
 WILL  MAKE A DETERMINATION AS TO WHETHER VALID APPLICATION OR ATTEMPT TO
 SCHEDULE AN APPOINTMENT TO FILE AN APPLICATION FOR CARE WAS MADE TO  THE
 FEDERAL  VETERANS  ADMINISTRATION  AND  WHETHER  NINETY  DAYS SHALL HAVE
 PASSED SINCE SUCH APPLICATION OR ATTEMPT WAS MADE. THE ADJUTANT  GENERAL
 MAY CAUSE EXAMINATIONS OF THE CLAIMANT TO BE MADE FROM TIME TO TIME BY A
 PHYSICIAN, SURGEON OR DENTIST DESIGNATED FOR THE PURPOSE BY THE ADJUTANT
 GENERAL,  AND HE OR SHE MAY DIRECT THE REMOVAL OF A CLAIMANT TO, AND HIS
 OR HER TREATMENT IN, A HOSPITAL DESIGNATED BY THE ADJUTANT GENERAL,  AND
 IF  THE  CLAIMANT REFUSES TO PERMIT ANY SUCH EXAMINATION OR IF HE OR SHE
 REFUSES TO GO TO SUCH HOSPITAL OR TO FOLLOW THE ADVICE GIVEN  OR  TREAT-
 MENT  PRESCRIBED FOR HIM OR HER THEREIN, HE OR SHE SHALL THEREBY FORFEIT
 AND BE BARRED FROM ALL RIGHT  TO  ANY  CLAIM  OR  ALLOWANCE  UNDER  THIS
 SECTION.
   B.  THE  ADJUTANT GENERAL MAY APPOINT A MEDICAL EXAMINER OR A BOARD OF
 THREE OFFICERS, AT LEAST ONE OF WHOM SHALL  BE  A  MEDICAL  OFFICER,  TO
 INQUIRE  INTO  THE MERITS OF ANY CLAIM PRESENTED UNDER THIS SECTION, AND
 TO RECOMMEND THE AMOUNT OR AMOUNTS, IF ANY, TO BE PAID OR ALLOWED  UNDER
 THIS  SECTION, OR HE OR SHE MAY, IN HIS OR HER DISCRETION, DETERMINE ANY
 CLAIM WITHOUT APPOINTING A MEDICAL EXAMINER OR BOARD AND FIX THE  AMOUNT
 TO  BE  PAID  OR  ALLOWED  UNDER  THIS SECTION. IF NO MEDICAL OFFICER IS
 AVAILABLE, SUCH MEDICAL EXAMINER OR MEDICAL OFFICER ON SUCH BOARD MAY BE
 A CIVILIAN PHYSICIAN, SURGEON OR DENTIST.
   C. A MEDICAL EXAMINER OR BOARD APPOINTED UNDER THIS SECTION SHALL HAVE
 THE SAME POWER TO TAKE EVIDENCE, ADMINISTER OATHS, ISSUE  SUBPOENAS  AND
 COMPEL  WITNESSES TO ATTEND AND TESTIFY AND TO PRODUCE BOOKS AND PAPERS,
 AND TO PUNISH THEIR FAILURE TO DO SO AS IS POSSESSED BY MILITARY COURTS.

 S. 2096                             3
 
   D. THE FINDINGS AND RECOMMENDATIONS OF THE MEDICAL EXAMINER  OR  BOARD
 SHALL   BE  SUBMITTED  TO  THE  ADJUTANT  GENERAL  WHO  MAY  RETURN  THE
 PROCEEDINGS TO SUCH EXAMINER OR BOARD FOR RECONSIDERATION OR FOR  TAKING
 FURTHER  TESTIMONY AND WHO SHALL APPROVE OR DISAPPROVE THE CLAIM AND FIX
 THE AMOUNT, IF ANY, TO BE PAID OR ALLOWED UNDER THIS SECTION. THE AMOUNT
 SO  FIXED  BY THE ADJUTANT GENERAL SHALL BE A CHARGE AGAINST AND BE PAID
 IN THE MANNER PROVIDED BY THIS SECTION, BY THE STATE.
   § 3. The military law is amended by adding a new article 14 to read as
 follows:
                                ARTICLE 14
         NEW YORK'S OWN COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 SECTION 400. PROGRAM ESTABLISHED.
         401. PURPOSE.
         402. DEFINITIONS.
         403. FUNCTIONS OF THE COMPTROLLER AND THE DIVISION.
         404. PROGRAM REQUIREMENTS; NEW YORK COMBAT  VETERANS  HEALTHCARE
                CHOICE ACCOUNT.
         405.  PROGRAM  LIMITATIONS;  NEW YORK COMBAT VETERANS HEALTHCARE
                CHOICE ACCOUNT.
   § 400. PROGRAM ESTABLISHED.  THERE IS HEREBY ESTABLISHED THE NEW  YORK
 COMBAT  VETERANS  HEALTHCARE  CHOICE  PROGRAM  AND SUCH PROGRAM SHALL BE
 KNOWN AND MAY BE CITED AS THE "NEW YORK'S OWN COMBAT VETERANS HEALTHCARE
 CHOICE PROGRAM".
   § 401. PURPOSE. THE PURPOSES OF THE NEW YORK COMBAT  VETERANS  HEALTH-
 CARE  CHOICE  PROGRAM  ARE  TO  AUTHORIZE  THE ESTABLISHMENT OF VETERANS
 HEALTHCARE CHOICE ACCOUNTS AND PROVIDE GUIDELINES FOR THE MAINTENANCE OF
 SUCH ACCOUNTS TO:
   1. ENABLE RESIDENT VETERAN MEMBERS OF THE ORGANIZED  MILITIA  OF  THIS
 STATE WHO WERE ON ACTIVE DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESI-
 DENT OF THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR OPERATION
 IRAQI  FREEDOM,  TO OBTAIN HEALTHCARE FROM THE PROVIDER OF THEIR CHOICE,
 WITH FUNDS FROM A NEW YORK COMBAT  VETERANS  HEALTHCARE  CHOICE  ACCOUNT
 FUNDED BY THE STATE AND THE SERVICE MEMBER IN ACCORDANCE WITH THIS ARTI-
 CLE,  WHEN  AFTER  NINETY DAYS OF MAKING APPLICATION TO OR ATTEMPTING TO
 SCHEDULE AN APPOINTMENT WITH THE  FEDERAL  VETERANS  ADMINISTRATION  FOR
 SUCH  CARE,  THE  SERVICE  MEMBER IS UNABLE TO SECURE TIMELY OR ADEQUATE
 HEALTHCARE SERVICES FOR INJURIES AND DISABILITIES SUSTAINED IN THE  LINE
 OF  ACTIVE DUTY IN SUCH A COMBAT ZONE, WHENEVER ORDERED INTO SUCH COMBAT
 ZONE FOR THREE HUNDRED SIXTY DAYS OR MORE BY THE GOVERNOR, THE  COMMAND-
 ING  GENERAL OF THE NEW YORK ARMY NATIONAL GUARD, THE COMMANDING OFFICER
 OF THE NEW YORK AIR NATIONAL GUARD OR  THE  COMMANDING  OFFICER  OF  THE
 NAVAL MILITIA;
   2. PROVIDE FUNDING FROM THE STATE FOR NEW YORK COMBAT VETERANS HEALTH-
 CARE  CHOICE  ACCOUNTS  IN  AN AMOUNT OF UP TO FIVE THOUSAND DOLLARS PER
 CALENDAR YEAR FOR A PERIOD NOT TO EXCEED THREE YEARS, WHEN IN ACCORDANCE
 WITH THIS ARTICLE, A QUALIFIED STATE RESIDENT COMBAT VETERAN  IS  UNABLE
 TO  SECURE  HEALTHCARE SERVICES WITHIN NINETY DAYS OF MAKING APPLICATION
 OR SCHEDULING AN APPOINTMENT  TO  MAKE  SUCH  AN  APPLICATION  FOR  SUCH
 SERVICES FROM THE FEDERAL VETERANS ADMINISTRATION; AND
   3.  TO  CREATE  A  STATE  PERSONAL  INCOME  TAX  DEDUCTION FOR AMOUNTS
 CONTRIBUTED BY QUALIFIED RESIDENT COMBAT VETERANS TO A NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT IN AN AMOUNT NOT TO EXCEED FIVE THOU-
 SAND DOLLARS PER CALENDAR YEAR AS PROVIDED IN THIS ARTICLE.
   § 402. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:

 S. 2096                             4

   1.  "ACCOUNT"  OR "NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT"
 SHALL MEAN AN INDIVIDUAL SAVINGS ACCOUNT ESTABLISHED IN ACCORDANCE  WITH
 THE PROVISIONS OF THIS ARTICLE.
   2.  "ACCOUNT  OWNER"  SHALL  MEAN  A PERSON WHO ENTERS INTO A NEW YORK
 COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT  AGREEMENT  PURSUANT  TO  THE
 PROVISIONS  OF  THIS ARTICLE, INCLUDING A PERSON WHO ENTERS INTO SUCH AN
 AGREEMENT AS A FIDUCIARY OR AGENT ON BEHALF OF A TRUST, ESTATE, PARTNER-
 SHIP, ASSOCIATION, COMPANY OR CORPORATION. THE ACCOUNT OWNER MAY ALSO BE
 THE DESIGNATED BENEFICIARY OF THE ACCOUNT.
   3. "DESIGNATED BENEFICIARY" SHALL MEAN, WITH RESPECT TO AN ACCOUNT  OR
 ACCOUNTS,  THE  INDIVIDUAL DESIGNATED AS THE INDIVIDUAL WHOSE HEALTHCARE
 EXPENSES ARE EXPECTED TO BE PAID FROM THE ACCOUNT OR ACCOUNTS.
   4. "FINANCIAL ORGANIZATION" SHALL MEAN AN ORGANIZATION  AUTHORIZED  TO
 DO  BUSINESS IN THE STATE OF NEW YORK AND (A) IS AN AUTHORIZED FIDUCIARY
 TO ACT AS A TRUSTEE PURSUANT TO THE PROVISIONS OF  AN  ACT  OF  CONGRESS
 ENTITLED  "EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT  OF 1974" AS SUCH
 PROVISIONS MAY BE AMENDED FROM TIME TO TIME, OR  AN  INSURANCE  COMPANY;
 AND  (B)(I)  IS  LICENSED  OR  CHARTERED  BY THE DEPARTMENT OF FINANCIAL
 SERVICES, (II) IS CHARTERED BY AN  AGENCY  OF  THE  FEDERAL  GOVERNMENT,
 (III)  IS  SUBJECT  TO THE JURISDICTION AND REGULATION OF THE SECURITIES
 AND EXCHANGE COMMISSION OF THE FEDERAL GOVERNMENT, OR (IV) IS ANY  OTHER
 ENTITY  OTHERWISE  AUTHORIZED  TO  ACT  IN  THIS STATE AS A TRUSTEE OF A
 HEALTH SAVINGS ACCOUNT PURSUANT TO THE PROVISIONS OF AN ACT OF  CONGRESS
 ENTITLED THE "MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION
 ACT", AS SUCH PROVISIONS MAY BE AMENDED FROM TIME TO TIME.
   5.  "ELIGIBLE  HEALTHCARE  INSTITUTION"  SHALL  MEAN  ANY  INSTITUTION
 LICENSED, CERTIFIED OR AUTHORIZED BY THE  STATE  TO  PROVIDE  HEALTHCARE
 SERVICES.
   6. "MEMBER OF FAMILY" SHALL MEAN A FAMILY MEMBER AS DEFINED IN SECTION
 529 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.
   7. "PROGRAM" SHALL MEAN THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
   8.  "QUALIFIED  HEALTHCARE  EXPENSES"  SHALL  MEAN ANY MEDICAL EXPENSE
 DEDUCTIBLE ON FEDERAL INCOME TAXES.
   9. "QUALIFIED STATE SERVICE" SHALL MEAN ACTIVE DUTY  SERVICE  RENDERED
 WHILE  BEING  ORDERED INTO A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF
 THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR  OPERATION  IRAQI
 FREEDOM,  FOR  THREE  HUNDRED  SIXTY  DAYS  OR MORE BY THE GOVERNOR, THE
 COMMANDING GENERAL OF THE NEW YORK ARMY NATIONAL GUARD,  THE  COMMANDING
 OFFICER  OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER OF
 THE NAVAL MILITIA.
   10. "QUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN ACCOUNT  TO
 PAY  THE QUALIFIED HEALTHCARE EXPENSES OF A SERVICE MEMBER OR DESIGNATED
 BENEFICIARY OF AN ACCOUNT AT AN ELIGIBLE HEALTHCARE INSTITUTION.
   11. "NONQUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN  ACCOUNT
 WHICH IS NOT:
   A. A QUALIFIED WITHDRAWAL; OR
   B.  A  WITHDRAWAL MADE AS THE RESULT OF THE DEATH OR DISABILITY OF THE
 DESIGNATED BENEFICIARY OF THE ACCOUNT.
   12. "DIVISION" SHALL MEAN THE DIVISION OF MILITARY AND NAVAL AFFAIRS.
   13. "COMPTROLLER" SHALL MEAN THE STATE COMPTROLLER.
   14. "MANAGEMENT CONTRACT" SHALL MEAN  THE  CONTRACT  EXECUTED  BY  THE
 COMPTROLLER AND A FINANCIAL ORGANIZATION SELECTED TO ACT AS A DEPOSITORY
 AND MANAGER OF THE PROGRAM.

 S. 2096                             5

   15.  "NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT"
 SHALL MEAN AN AGREEMENT BETWEEN THE COMPTROLLER OR A FINANCIAL ORGANIZA-
 TION AND AN ACCOUNT OWNER.
   16.  "PROGRAM MANAGER" SHALL MEAN A FINANCIAL ORGANIZATION SELECTED BY
 THE COMPTROLLER TO ACT AS DEPOSITORY AND MANAGER OF THE PROGRAM.
   § 403. FUNCTIONS OF THE COMPTROLLER AND THE  DIVISION.  1.  THE  COMP-
 TROLLER AND THE DIVISION SHALL IMPLEMENT THE PROGRAM UNDER THE TERMS AND
 CONDITIONS ESTABLISHED BY THIS ARTICLE AND A MEMORANDUM OF UNDERSTANDING
 RELATING TO ANY TERMS OR CONDITIONS NOT OTHERWISE EXPRESSLY PROVIDED FOR
 IN THIS ARTICLE.
   2. IN FURTHERANCE OF SUCH IMPLEMENTATION THE MEMORANDUM OF UNDERSTAND-
 ING  SHALL  ADDRESS  THE AUTHORITY AND RESPONSIBILITY OF THE COMPTROLLER
 AND THE DIVISION TO:
   A. DEVELOP AND IMPLEMENT THE PROGRAM IN A MANNER CONSISTENT  WITH  THE
 PROVISIONS  OF THIS ARTICLE THROUGH RULES AND REGULATIONS ESTABLISHED IN
 ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT;
   B. ENGAGE THE SERVICES OF CONSULTANTS ON A CONTRACT BASIS FOR  RENDER-
 ING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
   C.  SEEK  RULINGS AND OTHER GUIDANCE FROM THE UNITED STATES DEPARTMENT
 OF TREASURY AND THE INTERNAL REVENUE SERVICE RELATING TO THE PROGRAM;
   D. MAKE CHANGES TO THE PROGRAM REQUIRED FOR THE  PARTICIPANTS  IN  THE
 PROGRAM  TO OBTAIN THE FEDERAL INCOME TAX BENEFITS OR TREATMENT PROVIDED
 FOR HEALTH SAVINGS ACCOUNTS;
   E. CHARGE, IMPOSE AND COLLECT ADMINISTRATIVE FEES AND SERVICE  CHARGES
 IN  CONNECTION  WITH  ANY AGREEMENT, CONTRACT OR TRANSACTION RELATING TO
 THE PROGRAM;
   F. DEVELOP MARKETING PLANS AND PROMOTION MATERIAL;
   G. ESTABLISH THE METHODS BY WHICH THE FUNDS HELD IN SUCH  ACCOUNTS  BE
 DISPERSED;
   H.  ESTABLISH  THE METHOD BY WHICH FUNDS SHALL BE ALLOCATED TO PAY FOR
 ADMINISTRATIVE COSTS; AND
   I. DO ALL THINGS NECESSARY AND PROPER TO CARRY  OUT  THE  PURPOSES  OF
 THIS ARTICLE.
   §  404.  PROGRAM  REQUIREMENTS;  NEW  YORK  COMBAT VETERANS HEALTHCARE
 CHOICE ACCOUNT. 1. NEW YORK COMBAT VETERANS HEALTHCARE  CHOICE  ACCOUNTS
 ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS ARTICLE SHALL BE GOVERNED
 BY THE PROVISIONS OF THIS SECTION.
   2.  A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT MAY BE OPENED
 BY ANY PERSON WHO DESIRES TO SAVE MONEY FOR THE PAYMENT OF THE QUALIFIED
 HEALTHCARE EXPENSES OF THE DESIGNATED BENEFICIARY. AN ACCOUNT OWNER  MAY
 DESIGNATE  ANOTHER  QUALIFIED  SERVICE  MEMBER AS SUCCESSOR OWNER OF THE
 ACCOUNT IN THE EVENT OF THE DEATH OF THE ORIGINAL  ACCOUNT  OWNER.  SUCH
 PERSON  WHO  OPENS AN ACCOUNT OR ANY SUCCESSOR OWNER SHALL BE CONSIDERED
 THE ACCOUNT OWNER.
   A. AN APPLICATION FOR SUCH ACCOUNT SHALL BE IN THE FORM PRESCRIBED  BY
 THE PROGRAM AND CONTAIN THE FOLLOWING:
   (I) THE NAME, ADDRESS AND SOCIAL SECURITY NUMBER OR EMPLOYER IDENTIFI-
 CATION NUMBER OF THE ACCOUNT OWNER;
   (II) THE DESIGNATION OF A DESIGNATED BENEFICIARY;
   (III)  THE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OF THE DESIGNATED
 BENEFICIARY; AND
   (IV) SUCH OTHER INFORMATION AS THE PROGRAM MAY REQUIRE.
   B. THE COMPTROLLER AND THE DIVISION MAY ESTABLISH A  NOMINAL  FEE  FOR
 SUCH APPLICATION.
   3.  ANY PERSON, INCLUDING THE ACCOUNT OWNER, MAY MAKE CONTRIBUTIONS TO
 THE ACCOUNT AFTER THE ACCOUNT IS OPENED.

 S. 2096                             6
 
   4. CONTRIBUTIONS TO ACCOUNTS MAY BE MADE ONLY IN CASH.
   5.  AN ACCOUNT OWNER MAY MAKE A QUALIFIED WITHDRAWAL OF ALL OR PART OF
 THE BALANCE FROM AN ACCOUNT ON SIXTY DAYS NOTICE OR SUCH SHORTER  PERIOD
 AS MAY BE AUTHORIZED UNDER RULES GOVERNING THE PROGRAM. SUCH RULES SHALL
 INCLUDE  PROVISIONS  THAT  WILL GENERALLY ENABLE THE DETERMINATION AS TO
 WHETHER A WITHDRAWAL IS A NONQUALIFIED WITHDRAWAL OR A  QUALIFIED  WITH-
 DRAWAL.
   6.  AN  ACCOUNT  OWNER  MAY  CHANGE  THE  DESIGNATED BENEFICIARY OF AN
 ACCOUNT TO A SERVICE MEMBER WHO IS A MEMBER OF THE FAMILY OF  THE  PRIOR
 DESIGNATED  BENEFICIARY IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE
 MEMORANDUM OF UNDERSTANDING PURSUANT TO THE PROVISIONS OF  SECTION  FOUR
 HUNDRED THREE OF THIS ARTICLE.
   7.  THE  PROGRAM SHALL PROVIDE SEPARATE ACCOUNTING FOR EACH DESIGNATED
 BENEFICIARY.
   8. NO ACCOUNT OWNER OR DESIGNATED BENEFICIARY OF ANY ACCOUNT SHALL  BE
 PERMITTED TO DIRECT THE INVESTMENT OF ANY CONTRIBUTIONS TO AN ACCOUNT OR
 THE EARNINGS THEREON MORE THAN TWO TIMES IN ANY CALENDAR YEAR.
   9.  NEITHER  AN  ACCOUNT OWNER NOR A DESIGNATED BENEFICIARY MAY USE AN
 INTEREST IN AN ACCOUNT AS SECURITY FOR A LOAN. ANY PLEDGE OF AN INTEREST
 IN AN ACCOUNT SHALL BE OF NO FORCE AND EFFECT.
   10. THE COMPTROLLER SHALL PROMULGATE RULES OR REGULATIONS  TO  PREVENT
 CONTRIBUTIONS  ON  BEHALF  OF  A  DESIGNATED BENEFICIARY IN EXCESS OF AN
 AMOUNT THAT WOULD CAUSE THE AGGREGATE ACCOUNT BALANCE FOR  ALL  ACCOUNTS
 FOR  A  DESIGNATED  BENEFICIARY  TO EXCEED A MAXIMUM ACCOUNT BALANCE, AS
 ESTABLISHED FROM TIME TO TIME BY THE COMPTROLLER AND THE DIVISION ON THE
 BASIS OF HEALTHCARE COSTS IN THE  STATE,  WITH  ADEQUATE  SAFEGUARDS  TO
 PREVENT  MORE  CONTRIBUTIONS THAN NECESSARY TO PROVIDE FOR THE QUALIFIED
 HEALTHCARE COSTS OF THE BENEFICIARY, AS REQUIRED TO MAINTAIN THE PROGRAM
 AS A "QUALIFIED HEALTH SAVINGS PROGRAM" PURSUANT TO FEDERAL LAW.
   11. A. IF THERE IS ANY DISTRIBUTION FROM AN ACCOUNT TO ANY  INDIVIDUAL
 OR  FOR  THE  BENEFIT  OF  ANY  INDIVIDUAL  DURING A CALENDAR YEAR, SUCH
 DISTRIBUTION SHALL BE REPORTED TO THE INTERNAL REVENUE SERVICE  AND  THE
 ACCOUNT  OWNER,  THE  DESIGNATED  BENEFICIARY, OR THE DISTRIBUTEE TO THE
 EXTENT REQUIRED BY FEDERAL LAW OR REGULATION.
   B. STATEMENTS SHALL BE PROVIDED TO EACH ACCOUNT OWNER  AT  LEAST  ONCE
 EACH  YEAR WITHIN SIXTY DAYS AFTER THE END OF THE TWELVE MONTH PERIOD TO
 WHICH THEY RELATE. THE STATEMENT SHALL IDENTIFY THE  CONTRIBUTIONS  MADE
 DURING  A PRECEDING TWELVE MONTH PERIOD, THE TOTAL CONTRIBUTIONS MADE TO
 THE ACCOUNT THROUGH THE END OF THE PERIOD, THE VALUE OF THE  ACCOUNT  AT
 THE  END  OF  SUCH PERIOD, DISTRIBUTIONS MADE DURING SUCH PERIOD AND ANY
 OTHER INFORMATION THAT THE COMPTROLLER SHALL REQUIRE TO BE  REPORTED  TO
 THE ACCOUNT OWNER.
   C.  STATEMENTS  AND INFORMATION RELATING TO ACCOUNTS SHALL BE PREPARED
 AND FILED TO THE EXTENT REQUIRED BY FEDERAL AND STATE TAX LAW.
   12. A.  A  LOCAL  GOVERNMENT  OR  ORGANIZATION  DESCRIBED  IN  SECTION
 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, MAY OPEN AND
 BECOME  THE  ACCOUNT  OWNER  OF  AN ACCOUNT TO FUND QUALIFIED HEALTHCARE
 EXPENSES FOR PERSONS WHOSE IDENTITY WILL BE  DETERMINED  UPON  DISBURSE-
 MENT.
   B.  IN  THE CASE OF ANY ACCOUNT OPENED PURSUANT TO PARAGRAPH A OF THIS
 SUBDIVISION THE REQUIREMENT SET FORTH IN SUBDIVISION TWO OF THIS SECTION
 THAT A DESIGNATED BENEFICIARY BE DESIGNATED WHEN AN  ACCOUNT  IS  OPENED
 SHALL  NOT  APPLY  AND  EACH INDIVIDUAL WHO RECEIVES AN INTEREST IN SUCH
 ACCOUNT AS A QUALIFIED HEALTHCARE EXPENSE GRANT SHALL BE  TREATED  AS  A
 DESIGNATED BENEFICIARY WITH RESPECT TO SUCH INTEREST.

 S. 2096                             7

   13.  AN ANNUAL FEE MAY BE IMPOSED UPON THE ACCOUNT OWNER FOR THE MAIN-
 TENANCE OF THE ACCOUNT.
   14. THE PROGRAM SHALL DISCLOSE THE FOLLOWING INFORMATION IN WRITING TO
 EACH  ACCOUNT  OWNER  AND PROSPECTIVE ACCOUNT OWNER OF A NEW YORK COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT:
   A. THE TERMS AND CONDITIONS FOR PURCHASING A NEW YORK COMBAT  VETERANS
 HEALTHCARE CHOICE ACCOUNT;
   B. ANY RESTRICTIONS ON THE SUBSTITUTION OF BENEFICIARIES;
   C.  THE  PERSON  OR  ENTITY  ENTITLED TO TERMINATE THE NEW YORK COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   D. THE PERIOD OF TIME DURING WHICH A BENEFICIARY MAY RECEIVE  BENEFITS
 UNDER THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   E.  THE  TERMS  AND  CONDITIONS  UNDER  WHICH  MONEY  MAY BE WHOLLY OR
 PARTIALLY WITHDRAWN FROM THE PROGRAM, INCLUDING, BUT NOT LIMITED TO, ANY
 REASONABLE CHARGES AND FEES THAT MAY BE IMPOSED FOR WITHDRAWAL;
   F. THE PROBABLE TAX CONSEQUENCES ASSOCIATED WITH CONTRIBUTIONS TO  AND
 DISTRIBUTIONS FROM ACCOUNTS; AND
   G. ALL OTHER RIGHTS AND OBLIGATIONS PURSUANT TO NEW YORK COMBAT VETER-
 ANS  HEALTHCARE  CHOICE  ACCOUNT AGREEMENTS, AND ANY OTHER TERMS, CONDI-
 TIONS, AND PROVISIONS DEEMED NECESSARY AND APPROPRIATE BY THE  TERMS  OF
 THE  MEMORANDUM  OF  UNDERSTANDING ENTERED INTO PURSUANT TO SECTION FOUR
 HUNDRED THREE OF THIS ARTICLE.
   15. NEW YORK COMBAT  VETERANS  HEALTHCARE  CHOICE  ACCOUNT  AGREEMENTS
 SHALL  BE  SUBJECT  TO  SECTION  FOURTEEN-C  OF  THE BANKING LAW AND THE
 "TRUTH-IN-SAVINGS" REGULATIONS PROMULGATED THEREUNDER.
   16. NOTHING IN THIS ARTICLE OR IN ANY NEW YORK COMBAT VETERANS HEALTH-
 CARE CHOICE ACCOUNT AGREEMENT ENTERED  INTO  PURSUANT  TO  THIS  ARTICLE
 SHALL BE CONSTRUED AS A GUARANTEE BY THE STATE OR ANY HEALTHCARE PROVID-
 ER  THAT A BENEFICIARY WILL BE ADMITTED TO AN ELIGIBLE HEALTHCARE INSTI-
 TUTION, OR, UPON ADMISSION TO AN ELIGIBLE HEALTHCARE INSTITUTION WILL BE
 PERMITTED TO REMAIN IN SUCH ELIGIBLE HEALTHCARE INSTITUTION.
   § 405. PROGRAM LIMITATIONS; NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT. 1. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO:
   A. GIVE ANY DESIGNATED BENEFICIARY ANY RIGHTS OR LEGAL  INTEREST  WITH
 RESPECT  TO  AN ACCOUNT UNLESS THE DESIGNATED BENEFICIARY IS THE ACCOUNT
 OWNER;
   B. GUARANTEE THAT A DESIGNATED BENEFICIARY  WILL  BE  ADMITTED  TO  AN
 ELIGIBLE HEALTHCARE INSTITUTION;
   C.  CREATE  STATE RESIDENCY FOR AN INDIVIDUAL MERELY BECAUSE THE INDI-
 VIDUAL IS A DESIGNATED BENEFICIARY; OR
   D. GUARANTEE THAT AMOUNTS SAVED PURSUANT TO THE PROGRAM WILL BE SUFFI-
 CIENT TO COVER THE QUALIFIED HEALTHCARE EXPENSES OF A DESIGNATED BENEFI-
 CIARY.
   2. A. NOTHING IN THIS ARTICLE SHALL CREATE OR BE CONSTRUED  TO  CREATE
 ANY  OBLIGATION  OF THE COMPTROLLER, THE STATE, OR ANY AGENCY OR INSTRU-
 MENTALITY OF THE STATE TO GUARANTEE FOR THE BENEFIT OF ANY ACCOUNT OWNER
 OR DESIGNATED BENEFICIARY WITH RESPECT TO:
   (I) THE RATE OF INTEREST OR OTHER RETURN ON ANY ACCOUNT; AND
   (II) THE PAYMENT OF INTEREST OR OTHER RETURN ON ANY ACCOUNT.
   B. THE COMPTROLLER AND  THE  DIVISION  BY  RULE  OR  REGULATION  SHALL
 PROVIDE THAT EVERY CONTRACT, APPLICATION, DEPOSIT SLIP, OR OTHER SIMILAR
 DOCUMENT  THAT  MAY  BE  USED  IN  CONNECTION  WITH A CONTRIBUTION TO AN
 ACCOUNT CLEARLY INDICATE THAT THE ACCOUNT IS NOT INSURED  BY  THE  STATE
 AND NEITHER THE PRINCIPAL DEPOSITED NOR THE INVESTMENT RETURN IS GUARAN-
 TEED BY THE STATE.

 S. 2096                             8

   §  4.  The  state finance law is amended by adding a new section 82 to
 read as follows:
   §  82.  NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM TRUST FUND.
 1. THERE IS HEREBY ESTABLISHED IN THE SOLE CUSTODY OF  THE  STATE  COMP-
 TROLLER  A  SPECIAL  FUND  TO  BE  KNOWN AS THE NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE PROGRAM TRUST FUND. ALL PAYMENTS FROM SUCH FUND  SHALL
 BE  MADE IN ACCORDANCE WITH ARTICLE FOURTEEN OF THE MILITARY LAW AND THE
 MEMORANDUM OF UNDERSTANDING ENTERED INTO PURSUANT THERETO ON  THE  AUDIT
 OF THE STATE COMPTROLLER.
   2. THE FUND SHALL BE A TRUST FUND AND SHALL CONSIST OF A TRUST ACCOUNT
 AND  AN  OPERATING  ACCOUNT.  THE  TRUST  ACCOUNT  SHALL INCLUDE AMOUNTS
 RECEIVED BY THE NEW  YORK  COMBAT  VETERANS  HEALTHCARE  CHOICE  PROGRAM
 PURSUANT  TO  NEW  YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT AGREE-
 MENTS, ADMINISTRATIVE CHARGES, FEES, AND ALL OTHER AMOUNTS  RECEIVED  BY
 THE  PROGRAM  FROM  OTHER  SOURCES,  AND  INTEREST AND INVESTMENT INCOME
 EARNED BY THE TRUST FUND. THE COMPTROLLER SHALL, FROM TIME TO TIME, MAKE
 TRANSFERS FROM THE TRUST ACCOUNT TO THE OPERATING ACCOUNT FOR THE  IMME-
 DIATE  PAYMENT  OF OBLIGATIONS UNDER NEW YORK COMBAT VETERANS HEALTHCARE
 CHOICE ACCOUNT AGREEMENTS, OPERATING EXPENSES AND  ADMINISTRATIVE  COSTS
 OF  THE  NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT. ADMINISTRA-
 TIVE COSTS SHALL BE PAID OUT OF THE OPERATING ACCOUNT ACCORDING  TO  THE
 TERMS  AND  CONDITIONS ESTABLISHED PURSUANT TO THE PROVISIONS OF SECTION
 FOUR HUNDRED THREE OF THE MILITARY LAW.
   3. (A) THE COMPTROLLER, AS TRUSTEE, SHALL INVEST  THE  ASSETS  OF  THE
 TRUST FUND IN INVESTMENTS AUTHORIZED BY ARTICLE FOUR-A OF THE RETIREMENT
 AND SOCIAL SECURITY LAW, PROVIDED HOWEVER, THAT:
   (I)  THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION ONE
 HUNDRED SEVENTY-SEVEN OF THE RETIREMENT AND SOCIAL  SECURITY  LAW  SHALL
 NOT APPLY EXCEPT FOR THE FIRST CLAUSE OF SUBPARAGRAPH (II) OF SUCH PARA-
 GRAPH; AND
   (II)  NOTWITHSTANDING  THE  PROVISIONS OF SUBDIVISION SEVEN OF SECTION
 ONE HUNDRED SEVENTY-SEVEN OF THE RETIREMENT AND SOCIAL SECURITY  LAW  OR
 ANY  OTHER  LAW  TO  THE  CONTRARY,  THE ASSETS OF THE TRUST FUND MAY BE
 INVESTED IN ANY FUNDING AGREEMENT  ISSUED  IN  ACCORDANCE  WITH  SECTION
 THREE THOUSAND TWO HUNDRED TWENTY-TWO OF THE INSURANCE LAW BY A DOMESTIC
 LIFE  INSURANCE  COMPANY OR A FOREIGN LIFE INSURANCE COMPANY DOING BUSI-
 NESS IN THIS STATE, SUBJECT TO THE FOLLOWING:
   (1) SUCH A FUNDING AGREEMENT MAY PROVIDE FOR A GUARANTEED MINIMUM RATE
 OF RETURN;
   (2) SUCH A FUNDING AGREEMENT MAY BE ALLOCATED  AS  EITHER  A  SEPARATE
 ACCOUNT  OR  A  GENERAL  ACCOUNT  OF  THE ISSUER, AS THE COMPTROLLER MAY
 DECIDE;
   (3) TOTAL INVESTMENTS OF THE TRUST FUND PURSUANT TO THIS PARAGRAPH  IN
 ANY  FUNDING  AGREEMENTS ISSUED BY A SINGLE LIFE INSURANCE COMPANY WHICH
 ARE ALLOCATED AS A GENERAL ACCOUNT OF  THE  ISSUER  SHALL  NOT,  IN  THE
 AGGREGATE, EXCEED THREE HUNDRED FIFTY MILLION DOLLARS; AND
   (4)  NO ASSETS OF THE TRUST FUND SHALL BE INVESTED IN ANY SUCH FUNDING
 AGREEMENT UNLESS, AT THE TIME OF  SUCH  INVESTMENT,  THE  GENERAL  OBLI-
 GATIONS  OR  FINANCIAL  STRENGTH  OF THE ISSUER HAVE RECEIVED EITHER THE
 HIGHEST OR SECOND HIGHEST RATING BY  TWO  NATIONALLY  RECOGNIZED  RATING
 SERVICES  OR  BY  ONE  NATIONALLY RECOGNIZED RATING SERVICE IN THE EVENT
 THAT ONLY ONE SUCH SERVICE RATES SUCH OBLIGATIONS.
   (B) TRUST FUND ASSETS SHALL BE KEPT SEPARATE AND SHALL NOT BE  COMMIN-
 GLED  WITH  OTHER  ASSETS, EXCEPT AS PROVIDED IN THIS SECTION. THE COMP-
 TROLLER MAY ENTER INTO CONTRACTS TO PROVIDE FOR  INVESTMENT  ADVICE  AND
 MANAGEMENT,  CUSTODIAL SERVICES, AND OTHER PROFESSIONAL SERVICES FOR THE

 S. 2096                             9
 
 ADMINISTRATION AND INVESTMENT OF THE PROGRAM. ADMINISTRATIVE FEES, COSTS
 AND EXPENSES, INCLUDING INVESTMENT FEES AND EXPENSES, SHALL BE PAID FROM
 THE ASSETS OF THE FUND.
   4.  THE  COMPTROLLER SHALL PROVIDE FOR THE ADMINISTRATION OF THE TRUST
 FUND,  INCLUDING  MAINTAINING  PARTICIPANT  RECORDS  AND  ACCOUNTS,  AND
 PROVIDING  ANNUAL  AUDITED  REPORTS.  THE  COMPTROLLER  MAY  ENTER  INTO
 CONTRACTS TO PROVIDE ADMINISTRATIVE SERVICES AND REPORTING.
   § 5. Section 5205 of the civil practice law and rules  is  amended  by
 adding a new subdivision (p) to read as follows:
   (P)  EXEMPTION  FOR NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 TRUST FUND PAYMENT MONIES. MONIES IN  AN  ACCOUNT  CREATED  PURSUANT  TO
 ARTICLE  FOURTEEN OF THE MILITARY LAW ARE EXEMPT FROM APPLICATION TO THE
 SATISFACTION OF A MONEY JUDGMENT.
   § 6. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 42 to read as follows:
   (42) DISTRIBUTIONS RECEIVED DURING THE TAXABLE YEAR BY A  DISTRIBUTION
 OF  A  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE ACCOUNT ESTABLISHED
 PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW,  TO  THE  EXTENT  SUCH
 DISTRIBUTIONS ARE NOT QUALIFIED WITHDRAWALS WITHIN THE MEANING OF SUBDI-
 VISION TEN OF SECTION FOUR HUNDRED TWO OF THE MILITARY LAW.
   § 7. Subsection (c) of section 612 of the tax law is amended by adding
 two new paragraphs 42 and 43 to read as follows:
   (42) CONTRIBUTIONS MADE DURING THE TAXABLE YEAR BY AN ACCOUNT OWNER TO
 ONE  OR  MORE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNTS ESTAB-
 LISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO  THE  EXTENT
 NOT  DEDUCTIBLE  OR ELIGIBLE FOR CREDIT FOR FEDERAL INCOME TAX PURPOSES,
 PROVIDED, HOWEVER, THE EXCLUSION PROVIDED FOR IN  THIS  PARAGRAPH  SHALL
 NOT EXCEED FIVE THOUSAND DOLLARS FOR AN INDIVIDUAL OR HEAD OF HOUSEHOLD,
 AND FOR MARRIED COUPLES WHO FILE JOINT TAX RETURNS, SHALL NOT EXCEED TEN
 THOUSAND DOLLARS; PROVIDED, FURTHER, THAT SUCH EXCLUSION SHALL BE AVAIL-
 ABLE ONLY TO THE ACCOUNT OWNER AND NOT TO ANY OTHER PERSON.
   (43)  DISTRIBUTIONS  FROM A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT ESTABLISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO
 THE EXTENT INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES.
   § 8. Subsection (d) of section 658 of the tax law is amended by adding
 a new paragraph 4 to read as follows:
   (4) THE COMMISSIONER MAY BY  REGULATION  OR  INSTRUCTION  REQUIRE  THE
 FILING OF A REPORT ANNUALLY BY THE COMPTROLLER OR PROGRAM MANAGER OF THE
 NEW   YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM, OR THEIR DESIGNEE,
 SETTING FORTH THE NAMES AND IDENTIFICATION NUMBERS  OF  ACCOUNT  OWNERS,
 DESIGNATED  BENEFICIARIES  AND  DISTRIBUTEES OF NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE PROGRAM ACCOUNTS,  THE  AMOUNTS  CONTRIBUTED  TO  SUCH
 ACCOUNTS,  THE  AMOUNTS DISTRIBUTED FROM SUCH ACCOUNTS AND THE NATURE OF
 SUCH DISTRIBUTIONS AS QUALIFIED WITHDRAWALS OR AS WITHDRAWALS OTHER THAN
 QUALIFIED WITHDRAWALS, AND ANY SUCH OTHER INFORMATION AS THE COMMISSION-
 ER MAY REQUIRE REGARDING THE TAXATION  UNDER  THIS  ARTICLE  OF  AMOUNTS
 CONTRIBUTED  TO  OR  WITHDRAWN  FROM SUCH ACCOUNTS. THE COMMISSIONER MAY
 REQUIRE THAT ANY SUCH REPORT ALSO BE MADE TO THE ACCOUNT  OWNER,  DESIG-
 NATED BENEFICIARY OR DISTRIBUTEE OF ANY SUCH ACCOUNT.
   § 9. This act shall take effect immediately and shall apply to taxable
 years beginning after December 31, 2017.

co-Sponsors

View additional co-sponsors

2017-S2096A - Details

Current Committee:: Senate Veterans, Homeland Security And Military Affairs
Law Section:: Military Law
Laws Affected:: Add §216-a, Art 14 §§400 - 405, Mil L; add §82, St Fin L; amd §5205, CPLR; amd §§612 & 658, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S8148

2017-S2096A - Summary

Establishes the "New York's Own combat veterans healthcare choice program act" to establish tax free savings accounts to pay the healthcare costs of combat veterans on active duty during Operation Enduring Freedom or Operation Iraqi Freedom, until covered by the federal government; and directs the division of military and naval affairs to establish a registry of Afghanistan and Iraq veterans.

2017-S2096A - Sponsor Memo

                                 BILL NUMBER:  S2096A

 TITLE OF BILL :

An act to amend the military law, the state finance law, the civil
practice law and rules and the tax law, in relation to establishing
"New York's Own combat veterans healthcare choice program act"

 PURPOSE :

This bill would authorize the creation of healthcare savings accounts
for New York resident combat veterans of the organized militia of the
State, who while on State Orders in a combat zone during the period
September 2011 to date, suffered injuries or disability, and who, upon
90 days of making application to the US Veterans Administration for
healthcare services related to those injuries or disability, have
still not received primary care or an appointment for primary care,
for those injuries or disability.

 SUMMARY OF PROVISIONS :

The health care savings accounts will be funded: 1) for a period of up
to three years by New York State in the amount of $5,000 per year;
and, 2) by State tax deductible contributions from the combat veteran
not to exceed $5,000 per year. The State's contributions to the
soldier's health care savings accounts will terminate upon the earlier

of: a) the combat veteran securing services from the VA for the
injuries or disability sustained in a combat zone; or, b) three years
after establishment of the account.

All "Qualified Expenditures" from the account for healthcare would
likewise be New York State tax deductible and would specifically
include drug and alcohol rehabilitation as well as PTSD. The combat
veteran has complete authority to choose the healthcare provider so
long as they are licensed by New York State. Much like the College
Savers program, the accounts would be administered by the State
Comptroller and unexpended funds would earn interest while on account

 JUSTIFICATION :

The healthcare savings account program is patterned on the very
successful "New York 529 College Savers" program and will provide New
York resident members of the organized militia who deployed with a New
York unit to a combat zone, a bridge to much needed healthcare when,
through no fault of the service member, they have been unable to
secure primary care, or an appointment with a US Veterans
Administration primary care physician on a timely basis.

The recently released report of the General Accounting Office noted
that the Veterans Choice Program created by Congress in 2014 has
failed to reduce the number of veterans waiting more than 30 days to
get an appointment for primary care at either a VA facility or with
one of the Veterans Choice providers as the law requires. In fact,
according to the GAO report there are 71,000 more veterans waiting
more than the 30 days than there was in May of 2015.

Among the hundreds of thousands of veterans waiting longer than 30
days are hundreds of New York resident Air and Army National Guard
combat veterans who sustained injuries or disabilities in a combat
zone on orders from The Governor and Adjutant General; and who,
despite efforts to secure primary care from the US Veterans
Administration, have been unable to schedule appointments. This
program will ensure they have healthcare until picked up by the
Veterans Administration.


The Governor and Adjutant General have issued over 14,300 Orders to
members of the Organized Militia of New York to serve in certified
combat zones since September 11, 2001. An undetermined number of these
orders were issued to service members who had previously deployed to a
combat zone.

While the Division of Military and Naval Affairs does not certify
disability ratings nor does it have any mechanism for tracking the
applications of personnel returning from a combat zone who have made
application to US Veterans Administration for healthcare services,
this bill would create a mechanism for New York State to take of its
own combat veterans for injuries or disability suffered while on State
Orders in a Combat Zone if the US Veterans Administration has failed
to provide the service member with an appointment with a primary care
physician within 90 days of requesting one.

 LEGISLATIVE HISTORY :

2016: S.8148

 FISCAL IMPLICATIONS :

It is not possible to determine the total annual cost of this bill
since the number of effected New York resident combat veterans who
would qualify cannot be estimated. However, the total number of combat
deployments is 14,353 and among this universe is a number of service
members with multiple deployments and still others who are not
residents of New York State. Available records indicate that the
percentage of all civilian veterans with a VA disability is just 16.6%
and the number of combat veterans applying for VA disability has
ranged from 8% for Operation Enduring Freedom to a high of 30% for
Operation Iraqi Freedom. Since it is likely that a number of New
York's combat injured or disabled soldiers and airmen have succeeded
in securing appointments with a VA primary care physicians, the number
qualified applicants is projected to be not more than 1,500.

Thus, the maximum fiscal impact would not exceed $7,500,000 per year
over the first three years. Since the benefit terminates after the
earlier of three years; or the VA's assumption of responsibility for
primary care, it is highly unlikely that fiscal impact will ever reach
this sum.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning after December 31, 2017.

2017-S2096A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2096--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sens.  MURPHY,  CROCI, LARKIN, ORTT, CARLUCCI, GALLIVAN,
   GOLDEN, MARCHIONE, O'MARA, RANZENHOFER, SERINO, SEWARD --  read  twice
   and ordered printed, and when printed to be committed to the Committee
   on Veterans, Homeland Security and Military Affairs -- reported favor-
   ably  from said committee and committed to the Committee on Finance --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN ACT to amend the military law, the state finance law, the civil prac-
   tice  law  and rules and the tax law, in relation to establishing "New
   York's Own combat veterans healthcare choice program act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York's Own combat veterans healthcare choice program act".
   § 2. The military law is amended by adding a new section 216-a to read
 as follows:
   § 216-A. MEDICAL CARE WHEN INJURED OR DISABLED IN COMBAT ZONE.  1. ANY
 NEW YORK RESIDENT MEMBER OF THE ORGANIZED MILITIA  WHO  SHALL,  WHEN  ON
 ACTIVE  DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF THE UNITED
 STATES DURING OPERATION ENDURING FREEDOM OR OPERATION IRAQI FREEDOM, FOR
 THREE HUNDRED SIXTY DAYS OR MORE ON ORDERS ISSUED BY THE  GOVERNOR,  THE
 COMMANDING  GENERAL  OF THE NEW YORK ARMY NATIONAL GUARD, THE COMMANDING
 OFFICER OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER  OF
 THE NAVAL MILITIA, RECEIVE ANY WOUND OR INJURY, OR INCUR OR CONTRACT ANY
 DISABILITY  OR  DISEASE,  BY  REASON  OF SUCH DUTY, OR WHO SHALL WITHOUT
 FAULT OR NEGLECT ON HIS  OR  HER  PART  BE  WOUNDED  OR  DISABLED  WHILE
 PERFORMING  ANY LAWFULLY ORDERED DUTY WHILE IN SUCH A COMBAT ZONE, WHICH
 SHALL INCAPACITATE HIM OR HER, AND WHO IS UNABLE TO  RECEIVE  TIMELY  OR
 ADEQUATE  HEALTHCARE  SERVICES  FROM  THE FEDERAL DEPARTMENT OF VETERANS
 AFFAIRS WITHIN NINETY DAYS OF MAKING APPLICATION FOR SUCH SERVICES SHALL
 RECEIVE THE PAYMENT INTO SUCH SERVICE MEMBER'S NEW YORK COMBAT  VETERANS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02315-03-7

 S. 2096--A                          2
 
 HEALTHCARE  CHOICE  ACCOUNT  ESTABLISHED PURSUANT TO ARTICLE FOURTEEN OF
 THIS CHAPTER FOR CARE AND MEDICAL TREATMENT  IF  AUTHORITY  THEREFOR  IS
 GRANTED  BY  THE  ADJUTANT  GENERAL, EXPENSES FOR SUCH  CARE AND MEDICAL
 ATTENDANCE  AS ARE NECESSARY FOR THE APPROPRIATE TREATMENT OF THE WOUND,
 INJURY, DISEASE OR DISABILITY MAY BE  PAID  FROM  THE  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE  ACCOUNT AS PROVIDED IN ARTICLE FOURTEEN OF
 THIS CHAPTER UNTIL TREATMENT IS PROVIDED BY THE FEDERAL VETERANS  ADMIN-
 ISTRATION,  OR THE INCAPACITY RESULTING FROM SUCH WOUND, INJURY, DISEASE
 OR DISABILITY CANNOT BE MATERIALLY IMPROVED BY FURTHER  CARE  OR  TREAT-
 MENT.  THE  DETERMINATION OF WHETHER SUCH INJURY OR DISEASE WAS INCURRED
 WHILE PERFORMING SUCH LAWFULLY ORDERED ACTIVE DUTY  IN  A  COMBAT  ZONE,
 DESIGNATED BY THE PRESIDENT OF THE UNITED STATES DURING OPERATION ENDUR-
 ING FREEDOM OR OPERATION IRAQI FREEDOM, SHALL BE IN ACCORDANCE WITH THIS
 SECTION AND SUCH REGULATIONS AS MAY BE PRESCRIBED BY THE ADJUTANT GENER-
 AL.
   2.  IF  CARE  FOR  SUCH  A  SERVICE MEMBER IS APPROVED BY THE ADJUTANT
 GENERAL AND THE SERVICE MEMBER SHALL HAVE  CREATED  A  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE ACCOUNT IN ACCORDANCE WITH ARTICLE FOURTEEN
 OF THIS CHAPTER, THE STATE SHALL MAKE A PAYMENT OF FIVE THOUSAND DOLLARS
 INTO SUCH SERVICE MEMBER'S COMBAT VETERANS  HEALTHCARE  CHOICE  ACCOUNT.
 SUCH PAYMENT SHALL NOT EXCEED FIVE THOUSAND DOLLARS IN ANY CALENDAR YEAR
 AND  SHALL  BE  DISCONTINUED UPON THE SERVICE MEMBER RECEIVING CARE FROM
 THE FEDERAL DEPARTMENT OF VETERANS AFFAIRS FOR THE INJURIES OR DISABILI-
 TIES SUSTAINED WHILE IN QUALIFIED STATE SERVICE.
   3. NONE OF THE BENEFITS PROVIDED BY SUBDIVISION ONE  OF  THIS  SECTION
 SHALL  BE  PAID OR ALLOWED UNLESS A CLAIM THEREFOR HAS BEEN PRESENTED TO
 THE ADJUTANT GENERAL WITHIN THREE YEARS AFTER THE DATE WHEN SUCH  WOUND,
 INJURY,  DISEASE OR DISABILITY WAS INCURRED, OR FROM THE DATE OF DISCOV-
 ERY OF SUCH WOUND, INJURY, DISEASE OR DISABILITY.  NONE OF THE  BENEFITS
 PROVIDED  BY SUBDIVISION ONE OF THIS SECTION SHALL BE PAID OR ALLOWED BY
 THE STATE FOR ANY PERIOD DURING WHICH SUCH MEMBER OF THE ORGANIZED MILI-
 TIA IS ENTITLED TO RECEIVE THE SAME AS A CHARGE AGAINST FEDERAL FUNDS.
   4. A. WHERE A CLAIM IS MADE UNDER THIS SECTION  THE  ADJUTANT  GENERAL
 WILL  MAKE A DETERMINATION AS TO WHETHER VALID APPLICATION OR ATTEMPT TO
 SCHEDULE AN APPOINTMENT TO FILE AN APPLICATION FOR CARE WAS MADE TO  THE
 FEDERAL  VETERANS  ADMINISTRATION  AND  WHETHER  NINETY  DAYS SHALL HAVE
 PASSED SINCE SUCH APPLICATION OR ATTEMPT WAS MADE. THE ADJUTANT  GENERAL
 MAY CAUSE EXAMINATIONS OF THE CLAIMANT TO BE MADE FROM TIME TO TIME BY A
 PHYSICIAN, SURGEON OR DENTIST DESIGNATED FOR THE PURPOSE BY THE ADJUTANT
 GENERAL,  AND HE OR SHE MAY DIRECT THE REMOVAL OF A CLAIMANT TO, AND HIS
 OR HER TREATMENT IN, A HOSPITAL DESIGNATED BY THE ADJUTANT GENERAL,  AND
 IF  THE  CLAIMANT REFUSES TO PERMIT ANY SUCH EXAMINATION OR IF HE OR SHE
 REFUSES TO GO TO SUCH HOSPITAL OR TO FOLLOW THE ADVICE GIVEN  OR  TREAT-
 MENT  PRESCRIBED FOR HIM OR HER THEREIN, HE OR SHE SHALL THEREBY FORFEIT
 AND BE BARRED FROM ALL RIGHT  TO  ANY  CLAIM  OR  ALLOWANCE  UNDER  THIS
 SECTION.
   B.  THE  ADJUTANT GENERAL MAY APPOINT A MEDICAL EXAMINER OR A BOARD OF
 THREE OFFICERS, AT LEAST ONE OF WHOM SHALL  BE  A  MEDICAL  OFFICER,  TO
 INQUIRE  INTO  THE MERITS OF ANY CLAIM PRESENTED UNDER THIS SECTION, AND
 TO RECOMMEND THE AMOUNT OR AMOUNTS, IF ANY, TO BE PAID OR ALLOWED  UNDER
 THIS  SECTION, OR HE OR SHE MAY, IN HIS OR HER DISCRETION, DETERMINE ANY
 CLAIM WITHOUT APPOINTING A MEDICAL EXAMINER OR BOARD AND FIX THE  AMOUNT
 TO  BE  PAID  OR  ALLOWED  UNDER  THIS SECTION. IF NO MEDICAL OFFICER IS
 AVAILABLE, SUCH MEDICAL EXAMINER OR MEDICAL OFFICER ON SUCH BOARD MAY BE
 A CIVILIAN PHYSICIAN, SURGEON OR DENTIST.

 S. 2096--A                          3
 
   C. A MEDICAL EXAMINER OR BOARD APPOINTED UNDER THIS SECTION SHALL HAVE
 THE SAME POWER TO TAKE EVIDENCE, ADMINISTER OATHS, ISSUE  SUBPOENAS  AND
 COMPEL  WITNESSES TO ATTEND AND TESTIFY AND TO PRODUCE BOOKS AND PAPERS,
 AND TO PUNISH THEIR FAILURE TO DO SO AS IS POSSESSED BY MILITARY COURTS.
   D.  THE  FINDINGS AND RECOMMENDATIONS OF THE MEDICAL EXAMINER OR BOARD
 SHALL  BE  SUBMITTED  TO  THE  ADJUTANT  GENERAL  WHO  MAY  RETURN   THE
 PROCEEDINGS  TO SUCH EXAMINER OR BOARD FOR RECONSIDERATION OR FOR TAKING
 FURTHER TESTIMONY AND WHO SHALL APPROVE OR DISAPPROVE THE CLAIM AND  FIX
 THE AMOUNT, IF ANY, TO BE PAID OR ALLOWED UNDER THIS SECTION. THE AMOUNT
 SO  FIXED  BY THE ADJUTANT GENERAL SHALL BE A CHARGE AGAINST AND BE PAID
 IN THE MANNER PROVIDED BY THIS SECTION, BY THE STATE.
   § 3. The military law is amended by adding a new article 14 to read as
 follows:
                                ARTICLE 14
         NEW YORK'S OWN COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 SECTION 400. PROGRAM ESTABLISHED.
         401. PURPOSE.
         402. DEFINITIONS.
         403. FUNCTIONS OF THE COMPTROLLER AND THE DIVISION.
         404. PROGRAM REQUIREMENTS; NEW YORK COMBAT  VETERANS  HEALTHCARE
                CHOICE ACCOUNT.
         405.  PROGRAM  LIMITATIONS;  NEW YORK COMBAT VETERANS HEALTHCARE
                CHOICE ACCOUNT.
   § 400. PROGRAM ESTABLISHED.  THERE IS HEREBY ESTABLISHED THE NEW  YORK
 COMBAT  VETERANS  HEALTHCARE  CHOICE  PROGRAM  AND SUCH PROGRAM SHALL BE
 KNOWN AND MAY BE CITED AS THE "NEW YORK'S OWN COMBAT VETERANS HEALTHCARE
 CHOICE PROGRAM".
   § 401. PURPOSE. THE PURPOSES OF THE NEW YORK COMBAT  VETERANS  HEALTH-
 CARE  CHOICE  PROGRAM  ARE  TO  AUTHORIZE  THE ESTABLISHMENT OF VETERANS
 HEALTHCARE CHOICE ACCOUNTS AND PROVIDE GUIDELINES FOR THE MAINTENANCE OF
 SUCH ACCOUNTS TO:
   1. ENABLE RESIDENT VETERAN MEMBERS OF THE ORGANIZED  MILITIA  OF  THIS
 STATE WHO WERE ON ACTIVE DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESI-
 DENT OF THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR OPERATION
 IRAQI  FREEDOM,  TO OBTAIN HEALTHCARE FROM THE PROVIDER OF THEIR CHOICE,
 WITH FUNDS FROM A NEW YORK COMBAT  VETERANS  HEALTHCARE  CHOICE  ACCOUNT
 FUNDED BY THE STATE AND THE SERVICE MEMBER IN ACCORDANCE WITH THIS ARTI-
 CLE,  WHEN  AFTER  NINETY DAYS OF MAKING APPLICATION TO OR ATTEMPTING TO
 SCHEDULE AN APPOINTMENT WITH THE  FEDERAL  VETERANS  ADMINISTRATION  FOR
 SUCH  CARE,  THE  SERVICE  MEMBER IS UNABLE TO SECURE TIMELY OR ADEQUATE
 HEALTHCARE SERVICES FOR INJURIES AND DISABILITIES SUSTAINED IN THE  LINE
 OF  ACTIVE DUTY IN SUCH A COMBAT ZONE, WHENEVER ORDERED INTO SUCH COMBAT
 ZONE FOR THREE HUNDRED SIXTY DAYS OR MORE BY THE GOVERNOR, THE  COMMAND-
 ING  GENERAL OF THE NEW YORK ARMY NATIONAL GUARD, THE COMMANDING OFFICER
 OF THE NEW YORK AIR NATIONAL GUARD OR  THE  COMMANDING  OFFICER  OF  THE
 NAVAL MILITIA;
   2. PROVIDE FUNDING FROM THE STATE FOR NEW YORK COMBAT VETERANS HEALTH-
 CARE  CHOICE  ACCOUNTS  IN  AN AMOUNT OF UP TO FIVE THOUSAND DOLLARS PER
 CALENDAR YEAR FOR A PERIOD NOT TO EXCEED THREE YEARS, WHEN IN ACCORDANCE
 WITH THIS ARTICLE, A QUALIFIED STATE RESIDENT COMBAT VETERAN  IS  UNABLE
 TO  SECURE  HEALTHCARE SERVICES WITHIN NINETY DAYS OF MAKING APPLICATION
 OR SCHEDULING AN APPOINTMENT  TO  MAKE  SUCH  AN  APPLICATION  FOR  SUCH
 SERVICES FROM THE FEDERAL VETERANS ADMINISTRATION; AND
   3.  TO  CREATE  A  STATE  PERSONAL  INCOME  TAX  DEDUCTION FOR AMOUNTS
 CONTRIBUTED BY QUALIFIED RESIDENT COMBAT VETERANS TO A NEW  YORK  COMBAT

 S. 2096--A                          4

 VETERANS HEALTHCARE CHOICE ACCOUNT IN AN AMOUNT NOT TO EXCEED FIVE THOU-
 SAND DOLLARS PER CALENDAR YEAR AS PROVIDED IN THIS ARTICLE.
   § 402. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "ACCOUNT"  OR "NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT"
 SHALL MEAN AN INDIVIDUAL SAVINGS ACCOUNT ESTABLISHED IN ACCORDANCE  WITH
 THE PROVISIONS OF THIS ARTICLE.
   2.  "ACCOUNT  OWNER"  SHALL  MEAN  A PERSON WHO ENTERS INTO A NEW YORK
 COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT  AGREEMENT  PURSUANT  TO  THE
 PROVISIONS  OF  THIS ARTICLE, INCLUDING A PERSON WHO ENTERS INTO SUCH AN
 AGREEMENT AS A FIDUCIARY OR AGENT ON BEHALF OF A TRUST, ESTATE, PARTNER-
 SHIP, ASSOCIATION, COMPANY OR CORPORATION. THE ACCOUNT OWNER MAY ALSO BE
 THE DESIGNATED BENEFICIARY OF THE ACCOUNT.
   3. "DESIGNATED BENEFICIARY" SHALL MEAN, WITH RESPECT TO AN ACCOUNT  OR
 ACCOUNTS,  THE  INDIVIDUAL DESIGNATED AS THE INDIVIDUAL WHOSE HEALTHCARE
 EXPENSES ARE EXPECTED TO BE PAID FROM THE ACCOUNT OR ACCOUNTS.
   4. "FINANCIAL ORGANIZATION" SHALL MEAN AN ORGANIZATION  AUTHORIZED  TO
 DO  BUSINESS IN THE STATE OF NEW YORK AND (A) IS AN AUTHORIZED FIDUCIARY
 TO ACT AS A TRUSTEE PURSUANT TO THE PROVISIONS OF  AN  ACT  OF  CONGRESS
 ENTITLED  "EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT  OF 1974" AS SUCH
 PROVISIONS MAY BE AMENDED FROM TIME TO TIME, OR  AN  INSURANCE  COMPANY;
 AND  (B)(I)  IS  LICENSED  OR  CHARTERED  BY THE DEPARTMENT OF FINANCIAL
 SERVICES, (II) IS CHARTERED BY AN  AGENCY  OF  THE  FEDERAL  GOVERNMENT,
 (III)  IS  SUBJECT  TO THE JURISDICTION AND REGULATION OF THE SECURITIES
 AND EXCHANGE COMMISSION OF THE FEDERAL GOVERNMENT, OR (IV) IS ANY  OTHER
 ENTITY  OTHERWISE  AUTHORIZED  TO  ACT  IN  THIS STATE AS A TRUSTEE OF A
 HEALTH SAVINGS ACCOUNT PURSUANT TO THE PROVISIONS OF AN ACT OF  CONGRESS
 ENTITLED THE "MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION
 ACT", AS SUCH PROVISIONS MAY BE AMENDED FROM TIME TO TIME.
   5.  "ELIGIBLE  HEALTHCARE  INSTITUTION"  SHALL  MEAN  ANY  INSTITUTION
 LICENSED, CERTIFIED OR AUTHORIZED BY THE  STATE  TO  PROVIDE  HEALTHCARE
 SERVICES.
   6. "MEMBER OF FAMILY" SHALL MEAN A FAMILY MEMBER AS DEFINED IN SECTION
 529 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.
   7. "PROGRAM" SHALL MEAN THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
   8.  "QUALIFIED  HEALTHCARE  EXPENSES"  SHALL  MEAN ANY MEDICAL EXPENSE
 DEDUCTIBLE ON FEDERAL INCOME TAXES.
   9. "QUALIFIED STATE SERVICE" SHALL MEAN ACTIVE DUTY  SERVICE  RENDERED
 WHILE  BEING  ORDERED INTO A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF
 THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR  OPERATION  IRAQI
 FREEDOM,  FOR  THREE  HUNDRED  SIXTY  DAYS  OR MORE BY THE GOVERNOR, THE
 COMMANDING GENERAL OF THE NEW YORK ARMY NATIONAL GUARD,  THE  COMMANDING
 OFFICER  OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER OF
 THE NAVAL MILITIA.
   10. "QUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN ACCOUNT  TO
 PAY  THE QUALIFIED HEALTHCARE EXPENSES OF A SERVICE MEMBER OR DESIGNATED
 BENEFICIARY OF AN ACCOUNT AT AN ELIGIBLE HEALTHCARE INSTITUTION.
   11. "NONQUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN  ACCOUNT
 WHICH IS NOT:
   A. A QUALIFIED WITHDRAWAL; OR
   B.  A  WITHDRAWAL MADE AS THE RESULT OF THE DEATH OR DISABILITY OF THE
 DESIGNATED BENEFICIARY OF THE ACCOUNT.
   12. "DIVISION" SHALL MEAN THE DIVISION OF MILITARY AND NAVAL AFFAIRS.
   13. "COMPTROLLER" SHALL MEAN THE STATE COMPTROLLER.

 S. 2096--A                          5
 
   14. "MANAGEMENT CONTRACT" SHALL MEAN  THE  CONTRACT  EXECUTED  BY  THE
 COMPTROLLER AND A FINANCIAL ORGANIZATION SELECTED TO ACT AS A DEPOSITORY
 AND MANAGER OF THE PROGRAM.
   15.  "NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT"
 SHALL MEAN AN AGREEMENT BETWEEN THE COMPTROLLER OR A FINANCIAL ORGANIZA-
 TION AND AN ACCOUNT OWNER.
   16. "PROGRAM MANAGER" SHALL MEAN A FINANCIAL ORGANIZATION SELECTED  BY
 THE COMPTROLLER TO ACT AS DEPOSITORY AND MANAGER OF THE PROGRAM.
   §  403.  FUNCTIONS  OF  THE COMPTROLLER AND THE DIVISION. 1. THE COMP-
 TROLLER AND THE DIVISION SHALL IMPLEMENT THE PROGRAM UNDER THE TERMS AND
 CONDITIONS ESTABLISHED BY THIS ARTICLE AND A MEMORANDUM OF UNDERSTANDING
 RELATING TO ANY TERMS OR CONDITIONS NOT OTHERWISE EXPRESSLY PROVIDED FOR
 IN THIS ARTICLE.
   2. IN FURTHERANCE OF SUCH IMPLEMENTATION THE MEMORANDUM OF UNDERSTAND-
 ING SHALL ADDRESS THE AUTHORITY AND RESPONSIBILITY  OF  THE  COMPTROLLER
 AND THE DIVISION TO:
   A.  DEVELOP  AND IMPLEMENT THE PROGRAM IN A MANNER CONSISTENT WITH THE
 PROVISIONS OF THIS ARTICLE THROUGH RULES AND REGULATIONS ESTABLISHED  IN
 ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT;
   B.  ENGAGE THE SERVICES OF CONSULTANTS ON A CONTRACT BASIS FOR RENDER-
 ING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
   C. SEEK RULINGS AND OTHER GUIDANCE FROM THE UNITED  STATES  DEPARTMENT
 OF TREASURY AND THE INTERNAL REVENUE SERVICE RELATING TO THE PROGRAM;
   D.  MAKE  CHANGES  TO THE PROGRAM REQUIRED FOR THE PARTICIPANTS IN THE
 PROGRAM TO OBTAIN THE FEDERAL INCOME TAX BENEFITS OR TREATMENT  PROVIDED
 FOR HEALTH SAVINGS ACCOUNTS;
   E.  CHARGE, IMPOSE AND COLLECT ADMINISTRATIVE FEES AND SERVICE CHARGES
 IN CONNECTION WITH ANY AGREEMENT, CONTRACT OR  TRANSACTION  RELATING  TO
 THE PROGRAM;
   F. DEVELOP MARKETING PLANS AND PROMOTION MATERIAL;
   G.  ESTABLISH  THE METHODS BY WHICH THE FUNDS HELD IN SUCH ACCOUNTS BE
 DISPERSED;
   H. ESTABLISH THE METHOD BY WHICH FUNDS SHALL BE ALLOCATED TO  PAY  FOR
 ADMINISTRATIVE COSTS; AND
   I.  DO  ALL  THINGS  NECESSARY AND PROPER TO CARRY OUT THE PURPOSES OF
 THIS ARTICLE.
   § 404. PROGRAM  REQUIREMENTS;  NEW  YORK  COMBAT  VETERANS  HEALTHCARE
 CHOICE  ACCOUNT.  1. NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNTS
 ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS ARTICLE SHALL BE GOVERNED
 BY THE PROVISIONS OF THIS SECTION.
   2. A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT MAY BE  OPENED
 BY ANY PERSON WHO DESIRES TO SAVE MONEY FOR THE PAYMENT OF THE QUALIFIED
 HEALTHCARE  EXPENSES OF THE DESIGNATED BENEFICIARY. AN ACCOUNT OWNER MAY
 DESIGNATE ANOTHER QUALIFIED SERVICE MEMBER AS  SUCCESSOR  OWNER  OF  THE
 ACCOUNT  IN  THE  EVENT OF THE DEATH OF THE ORIGINAL ACCOUNT OWNER. SUCH
 PERSON WHO OPENS AN ACCOUNT OR ANY SUCCESSOR OWNER SHALL  BE  CONSIDERED
 THE ACCOUNT OWNER.
   A.  AN APPLICATION FOR SUCH ACCOUNT SHALL BE IN THE FORM PRESCRIBED BY
 THE PROGRAM AND CONTAIN THE FOLLOWING:
   (I) THE NAME, ADDRESS AND SOCIAL SECURITY NUMBER OR EMPLOYER IDENTIFI-
 CATION NUMBER OF THE ACCOUNT OWNER;
   (II) THE DESIGNATION OF A DESIGNATED BENEFICIARY;
   (III) THE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OF THE  DESIGNATED
 BENEFICIARY; AND
   (IV) SUCH OTHER INFORMATION AS THE PROGRAM MAY REQUIRE.

 S. 2096--A                          6
 
   B.  THE  COMPTROLLER  AND THE DIVISION MAY ESTABLISH A NOMINAL FEE FOR
 SUCH APPLICATION.
   3.  ANY PERSON, INCLUDING THE ACCOUNT OWNER, MAY MAKE CONTRIBUTIONS TO
 THE ACCOUNT AFTER THE ACCOUNT IS OPENED.
   4. CONTRIBUTIONS TO ACCOUNTS MAY BE MADE ONLY IN CASH.
   5. AN ACCOUNT OWNER MAY MAKE A QUALIFIED WITHDRAWAL OF ALL OR PART  OF
 THE  BALANCE FROM AN ACCOUNT ON SIXTY DAYS NOTICE OR SUCH SHORTER PERIOD
 AS MAY BE AUTHORIZED UNDER RULES GOVERNING THE PROGRAM. SUCH RULES SHALL
 INCLUDE PROVISIONS THAT WILL GENERALLY ENABLE THE  DETERMINATION  AS  TO
 WHETHER  A  WITHDRAWAL IS A NONQUALIFIED WITHDRAWAL OR A QUALIFIED WITH-
 DRAWAL.
   6. AN ACCOUNT OWNER  MAY  CHANGE  THE  DESIGNATED  BENEFICIARY  OF  AN
 ACCOUNT  TO  A SERVICE MEMBER WHO IS A MEMBER OF THE FAMILY OF THE PRIOR
 DESIGNATED BENEFICIARY IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY  THE
 MEMORANDUM  OF  UNDERSTANDING PURSUANT TO THE PROVISIONS OF SECTION FOUR
 HUNDRED THREE OF THIS ARTICLE.
   7. THE PROGRAM SHALL PROVIDE SEPARATE ACCOUNTING FOR  EACH  DESIGNATED
 BENEFICIARY.
   8.  NO ACCOUNT OWNER OR DESIGNATED BENEFICIARY OF ANY ACCOUNT SHALL BE
 PERMITTED TO DIRECT THE INVESTMENT OF ANY CONTRIBUTIONS TO AN ACCOUNT OR
 THE EARNINGS THEREON MORE THAN TWO TIMES IN ANY CALENDAR YEAR.
   9. NEITHER AN ACCOUNT OWNER NOR A DESIGNATED BENEFICIARY  MAY  USE  AN
 INTEREST IN AN ACCOUNT AS SECURITY FOR A LOAN. ANY PLEDGE OF AN INTEREST
 IN AN ACCOUNT SHALL BE OF NO FORCE AND EFFECT.
   10.  THE  COMPTROLLER SHALL PROMULGATE RULES OR REGULATIONS TO PREVENT
 CONTRIBUTIONS ON BEHALF OF A DESIGNATED  BENEFICIARY  IN  EXCESS  OF  AN
 AMOUNT  THAT  WOULD CAUSE THE AGGREGATE ACCOUNT BALANCE FOR ALL ACCOUNTS
 FOR A DESIGNATED BENEFICIARY TO EXCEED A  MAXIMUM  ACCOUNT  BALANCE,  AS
 ESTABLISHED FROM TIME TO TIME BY THE COMPTROLLER AND THE DIVISION ON THE
 BASIS  OF  HEALTHCARE  COSTS  IN  THE STATE, WITH ADEQUATE SAFEGUARDS TO
 PREVENT MORE CONTRIBUTIONS THAN NECESSARY TO PROVIDE FOR  THE  QUALIFIED
 HEALTHCARE COSTS OF THE BENEFICIARY, AS REQUIRED TO MAINTAIN THE PROGRAM
 AS A "QUALIFIED HEALTH SAVINGS PROGRAM" PURSUANT TO FEDERAL LAW.
   11.  A. IF THERE IS ANY DISTRIBUTION FROM AN ACCOUNT TO ANY INDIVIDUAL
 OR FOR THE BENEFIT OF  ANY  INDIVIDUAL  DURING  A  CALENDAR  YEAR,  SUCH
 DISTRIBUTION  SHALL  BE REPORTED TO THE INTERNAL REVENUE SERVICE AND THE
 ACCOUNT OWNER, THE DESIGNATED BENEFICIARY, OR  THE  DISTRIBUTEE  TO  THE
 EXTENT REQUIRED BY FEDERAL LAW OR REGULATION.
   B.  STATEMENTS  SHALL  BE PROVIDED TO EACH ACCOUNT OWNER AT LEAST ONCE
 EACH YEAR WITHIN SIXTY DAYS AFTER THE END OF THE TWELVE MONTH PERIOD  TO
 WHICH  THEY  RELATE. THE STATEMENT SHALL IDENTIFY THE CONTRIBUTIONS MADE
 DURING A PRECEDING TWELVE MONTH PERIOD, THE TOTAL CONTRIBUTIONS MADE  TO
 THE  ACCOUNT  THROUGH THE END OF THE PERIOD, THE VALUE OF THE ACCOUNT AT
 THE END OF SUCH PERIOD, DISTRIBUTIONS MADE DURING SUCH  PERIOD  AND  ANY
 OTHER  INFORMATION  THAT THE COMPTROLLER SHALL REQUIRE TO BE REPORTED TO
 THE ACCOUNT OWNER.
   C. STATEMENTS AND INFORMATION RELATING TO ACCOUNTS SHALL  BE  PREPARED
 AND FILED TO THE EXTENT REQUIRED BY FEDERAL AND STATE TAX LAW.
   12.  A.  A  LOCAL  GOVERNMENT  OR  ORGANIZATION  DESCRIBED  IN SECTION
 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, MAY OPEN AND
 BECOME THE ACCOUNT OWNER OF AN  ACCOUNT  TO  FUND  QUALIFIED  HEALTHCARE
 EXPENSES  FOR  PERSONS  WHOSE IDENTITY WILL BE DETERMINED UPON DISBURSE-
 MENT.
   B. IN THE CASE OF ANY ACCOUNT OPENED PURSUANT TO PARAGRAPH A  OF  THIS
 SUBDIVISION THE REQUIREMENT SET FORTH IN SUBDIVISION TWO OF THIS SECTION
 THAT  A  DESIGNATED  BENEFICIARY BE DESIGNATED WHEN AN ACCOUNT IS OPENED

 S. 2096--A                          7
 
 SHALL NOT APPLY AND EACH INDIVIDUAL WHO RECEIVES  AN  INTEREST  IN  SUCH
 ACCOUNT  AS  A  QUALIFIED HEALTHCARE EXPENSE GRANT SHALL BE TREATED AS A
 DESIGNATED BENEFICIARY WITH RESPECT TO SUCH INTEREST.
   13.  AN ANNUAL FEE MAY BE IMPOSED UPON THE ACCOUNT OWNER FOR THE MAIN-
 TENANCE OF THE ACCOUNT.
   14. THE PROGRAM SHALL DISCLOSE THE FOLLOWING INFORMATION IN WRITING TO
 EACH ACCOUNT OWNER AND PROSPECTIVE ACCOUNT OWNER OF A  NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT:
   A.  THE TERMS AND CONDITIONS FOR PURCHASING A NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE ACCOUNT;
   B. ANY RESTRICTIONS ON THE SUBSTITUTION OF BENEFICIARIES;
   C. THE PERSON OR ENTITY ENTITLED TO  TERMINATE  THE  NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   D.  THE PERIOD OF TIME DURING WHICH A BENEFICIARY MAY RECEIVE BENEFITS
 UNDER THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   E. THE TERMS AND  CONDITIONS  UNDER  WHICH  MONEY  MAY  BE  WHOLLY  OR
 PARTIALLY WITHDRAWN FROM THE PROGRAM, INCLUDING, BUT NOT LIMITED TO, ANY
 REASONABLE CHARGES AND FEES THAT MAY BE IMPOSED FOR WITHDRAWAL;
   F.  THE PROBABLE TAX CONSEQUENCES ASSOCIATED WITH CONTRIBUTIONS TO AND
 DISTRIBUTIONS FROM ACCOUNTS; AND
   G. ALL OTHER RIGHTS AND OBLIGATIONS PURSUANT TO NEW YORK COMBAT VETER-
 ANS HEALTHCARE CHOICE ACCOUNT AGREEMENTS, AND ANY  OTHER  TERMS,  CONDI-
 TIONS,  AND  PROVISIONS DEEMED NECESSARY AND APPROPRIATE BY THE TERMS OF
 THE MEMORANDUM OF UNDERSTANDING ENTERED INTO PURSUANT  TO  SECTION  FOUR
 HUNDRED THREE OF THIS ARTICLE.
   15.  NEW  YORK  COMBAT  VETERANS  HEALTHCARE CHOICE ACCOUNT AGREEMENTS
 SHALL BE SUBJECT TO SECTION  FOURTEEN-C  OF  THE  BANKING  LAW  AND  THE
 "TRUTH-IN-SAVINGS" REGULATIONS PROMULGATED THEREUNDER.
   16. NOTHING IN THIS ARTICLE OR IN ANY NEW YORK COMBAT VETERANS HEALTH-
 CARE  CHOICE  ACCOUNT  AGREEMENT  ENTERED  INTO PURSUANT TO THIS ARTICLE
 SHALL BE CONSTRUED AS A GUARANTEE BY THE STATE OR ANY HEALTHCARE PROVID-
 ER THAT A BENEFICIARY WILL BE ADMITTED TO AN ELIGIBLE HEALTHCARE  INSTI-
 TUTION, OR, UPON ADMISSION TO AN ELIGIBLE HEALTHCARE INSTITUTION WILL BE
 PERMITTED TO REMAIN IN SUCH ELIGIBLE HEALTHCARE INSTITUTION.
   § 405. PROGRAM LIMITATIONS; NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT. 1. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO:
   A.  GIVE  ANY DESIGNATED BENEFICIARY ANY RIGHTS OR LEGAL INTEREST WITH
 RESPECT TO AN ACCOUNT UNLESS THE DESIGNATED BENEFICIARY IS  THE  ACCOUNT
 OWNER;
   B.  GUARANTEE  THAT  A  DESIGNATED  BENEFICIARY WILL BE ADMITTED TO AN
 ELIGIBLE HEALTHCARE INSTITUTION;
   C. CREATE STATE RESIDENCY FOR AN INDIVIDUAL MERELY BECAUSE  THE  INDI-
 VIDUAL IS A DESIGNATED BENEFICIARY; OR
   D. GUARANTEE THAT AMOUNTS SAVED PURSUANT TO THE PROGRAM WILL BE SUFFI-
 CIENT TO COVER THE QUALIFIED HEALTHCARE EXPENSES OF A DESIGNATED BENEFI-
 CIARY.
   2.  A.  NOTHING IN THIS ARTICLE SHALL CREATE OR BE CONSTRUED TO CREATE
 ANY OBLIGATION OF THE COMPTROLLER, THE STATE, OR ANY AGENCY  OR  INSTRU-
 MENTALITY OF THE STATE TO GUARANTEE FOR THE BENEFIT OF ANY ACCOUNT OWNER
 OR DESIGNATED BENEFICIARY WITH RESPECT TO:
   (I) THE RATE OF INTEREST OR OTHER RETURN ON ANY ACCOUNT; AND
   (II) THE PAYMENT OF INTEREST OR OTHER RETURN ON ANY ACCOUNT.
   B.  THE  COMPTROLLER  AND  THE  DIVISION  BY  RULE OR REGULATION SHALL
 PROVIDE THAT EVERY CONTRACT, APPLICATION, DEPOSIT SLIP, OR OTHER SIMILAR
 DOCUMENT THAT MAY BE USED  IN  CONNECTION  WITH  A  CONTRIBUTION  TO  AN
 ACCOUNT  CLEARLY  INDICATE  THAT THE ACCOUNT IS NOT INSURED BY THE STATE

 S. 2096--A                          8
 
 AND NEITHER THE PRINCIPAL DEPOSITED NOR THE INVESTMENT RETURN IS GUARAN-
 TEED BY THE STATE.
   §  4.  The  state finance law is amended by adding a new section 82 to
 read as follows:
   § 82. NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM  TRUST  FUND.
 1.  THERE  IS  HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE STATE COMP-
 TROLLER A SPECIAL FUND TO BE KNOWN  AS  THE  NEW  YORK  COMBAT  VETERANS
 HEALTHCARE  CHOICE PROGRAM TRUST FUND. ALL PAYMENTS FROM SUCH FUND SHALL
 BE MADE IN ACCORDANCE WITH ARTICLE FOURTEEN OF THE MILITARY LAW AND  THE
 MEMORANDUM  OF  UNDERSTANDING ENTERED INTO PURSUANT THERETO ON THE AUDIT
 OF THE STATE COMPTROLLER.
   2. THE FUND SHALL BE A TRUST FUND AND SHALL CONSIST OF A TRUST ACCOUNT
 AND AN OPERATING  ACCOUNT.  THE  TRUST  ACCOUNT  SHALL  INCLUDE  AMOUNTS
 RECEIVED  BY  THE  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE PROGRAM
 PURSUANT TO NEW YORK COMBAT VETERANS HEALTHCARE  CHOICE  ACCOUNT  AGREE-
 MENTS,  ADMINISTRATIVE  CHARGES, FEES, AND ALL OTHER AMOUNTS RECEIVED BY
 THE PROGRAM FROM OTHER  SOURCES,  AND  INTEREST  AND  INVESTMENT  INCOME
 EARNED BY THE TRUST FUND. THE COMPTROLLER SHALL, FROM TIME TO TIME, MAKE
 TRANSFERS  FROM THE TRUST ACCOUNT TO THE OPERATING ACCOUNT FOR THE IMME-
 DIATE PAYMENT OF OBLIGATIONS UNDER NEW YORK COMBAT  VETERANS  HEALTHCARE
 CHOICE  ACCOUNT  AGREEMENTS, OPERATING EXPENSES AND ADMINISTRATIVE COSTS
 OF THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT.  ADMINISTRA-
 TIVE  COSTS  SHALL BE PAID OUT OF THE OPERATING ACCOUNT ACCORDING TO THE
 TERMS AND CONDITIONS ESTABLISHED PURSUANT TO THE PROVISIONS  OF  SECTION
 FOUR HUNDRED THREE OF THE MILITARY LAW.
   3.  (A)  THE  COMPTROLLER,  AS TRUSTEE, SHALL INVEST THE ASSETS OF THE
 TRUST FUND IN INVESTMENTS AUTHORIZED BY ARTICLE FOUR-A OF THE RETIREMENT
 AND SOCIAL SECURITY LAW, PROVIDED HOWEVER, THAT:
   (I) THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION  ONE
 HUNDRED  SEVENTY-SEVEN  OF  THE RETIREMENT AND SOCIAL SECURITY LAW SHALL
 NOT APPLY EXCEPT FOR THE FIRST CLAUSE OF SUBPARAGRAPH (II) OF SUCH PARA-
 GRAPH; AND
   (II) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION  SEVEN  OF  SECTION
 ONE  HUNDRED  SEVENTY-SEVEN OF THE RETIREMENT AND SOCIAL SECURITY LAW OR
 ANY OTHER LAW TO THE CONTRARY, THE ASSETS  OF  THE  TRUST  FUND  MAY  BE
 INVESTED  IN  ANY  FUNDING  AGREEMENT  ISSUED IN ACCORDANCE WITH SECTION
 THREE THOUSAND TWO HUNDRED TWENTY-TWO OF THE INSURANCE LAW BY A DOMESTIC
 LIFE INSURANCE COMPANY OR A FOREIGN LIFE INSURANCE COMPANY  DOING  BUSI-
 NESS IN THIS STATE, SUBJECT TO THE FOLLOWING:
   (1) SUCH A FUNDING AGREEMENT MAY PROVIDE FOR A GUARANTEED MINIMUM RATE
 OF RETURN;
   (2)  SUCH  A  FUNDING  AGREEMENT MAY BE ALLOCATED AS EITHER A SEPARATE
 ACCOUNT OR A GENERAL ACCOUNT OF  THE  ISSUER,  AS  THE  COMPTROLLER  MAY
 DECIDE;
   (3)  TOTAL INVESTMENTS OF THE TRUST FUND PURSUANT TO THIS PARAGRAPH IN
 ANY FUNDING AGREEMENTS ISSUED BY A SINGLE LIFE INSURANCE  COMPANY  WHICH
 ARE  ALLOCATED  AS  A  GENERAL  ACCOUNT  OF THE ISSUER SHALL NOT, IN THE
 AGGREGATE, EXCEED THREE HUNDRED FIFTY MILLION DOLLARS; AND
   (4) NO ASSETS OF THE TRUST FUND SHALL BE INVESTED IN ANY SUCH  FUNDING
 AGREEMENT  UNLESS,  AT  THE  TIME  OF SUCH INVESTMENT, THE GENERAL OBLI-
 GATIONS OR FINANCIAL STRENGTH OF THE ISSUER  HAVE  RECEIVED  EITHER  THE
 HIGHEST  OR  SECOND  HIGHEST  RATING BY TWO NATIONALLY RECOGNIZED RATING
 SERVICES OR BY ONE NATIONALLY RECOGNIZED RATING  SERVICE  IN  THE  EVENT
 THAT ONLY ONE SUCH SERVICE RATES SUCH OBLIGATIONS.
   (B)  TRUST FUND ASSETS SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMIN-
 GLED WITH OTHER ASSETS, EXCEPT AS PROVIDED IN THIS  SECTION.  THE  COMP-

 S. 2096--A                          9

 TROLLER  MAY  ENTER  INTO CONTRACTS TO PROVIDE FOR INVESTMENT ADVICE AND
 MANAGEMENT, CUSTODIAL SERVICES, AND OTHER PROFESSIONAL SERVICES FOR  THE
 ADMINISTRATION AND INVESTMENT OF THE PROGRAM. ADMINISTRATIVE FEES, COSTS
 AND EXPENSES, INCLUDING INVESTMENT FEES AND EXPENSES, SHALL BE PAID FROM
 THE ASSETS OF THE FUND.
   4.  THE  COMPTROLLER SHALL PROVIDE FOR THE ADMINISTRATION OF THE TRUST
 FUND,  INCLUDING  MAINTAINING  PARTICIPANT  RECORDS  AND  ACCOUNTS,  AND
 PROVIDING  ANNUAL  AUDITED  REPORTS.  THE  COMPTROLLER  MAY  ENTER  INTO
 CONTRACTS TO PROVIDE ADMINISTRATIVE SERVICES AND REPORTING.
   § 5. Section 5205 of the civil practice law and rules  is  amended  by
 adding a new subdivision (p) to read as follows:
   (P)  EXEMPTION  FOR NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 TRUST FUND PAYMENT MONIES. MONIES IN  AN  ACCOUNT  CREATED  PURSUANT  TO
 ARTICLE  FOURTEEN OF THE MILITARY LAW ARE EXEMPT FROM APPLICATION TO THE
 SATISFACTION OF A MONEY JUDGMENT.
   § 6. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 42 to read as follows:
   (42) DISTRIBUTIONS RECEIVED DURING THE TAXABLE YEAR BY A  DISTRIBUTION
 OF  A  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE ACCOUNT ESTABLISHED
 PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW,  TO  THE  EXTENT  SUCH
 DISTRIBUTIONS ARE NOT QUALIFIED WITHDRAWALS WITHIN THE MEANING OF SUBDI-
 VISION TEN OF SECTION FOUR HUNDRED TWO OF THE MILITARY LAW.
   § 7. Subsection (c) of section 612 of the tax law is amended by adding
 two new paragraphs 42 and 43 to read as follows:
   (42) CONTRIBUTIONS MADE DURING THE TAXABLE YEAR BY AN ACCOUNT OWNER TO
 ONE  OR  MORE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNTS ESTAB-
 LISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO  THE  EXTENT
 NOT  DEDUCTIBLE  OR ELIGIBLE FOR CREDIT FOR FEDERAL INCOME TAX PURPOSES,
 PROVIDED, HOWEVER, THE EXCLUSION PROVIDED FOR IN  THIS  PARAGRAPH  SHALL
 NOT EXCEED FIVE THOUSAND DOLLARS FOR AN INDIVIDUAL OR HEAD OF HOUSEHOLD,
 AND FOR MARRIED COUPLES WHO FILE JOINT TAX RETURNS, SHALL NOT EXCEED TEN
 THOUSAND DOLLARS; PROVIDED, FURTHER, THAT SUCH EXCLUSION SHALL BE AVAIL-
 ABLE ONLY TO THE ACCOUNT OWNER AND NOT TO ANY OTHER PERSON.
   (43)  DISTRIBUTIONS  FROM A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT ESTABLISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO
 THE EXTENT INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES.
   § 8. Subsection (d) of section 658 of the tax law is amended by adding
 a new paragraph 4 to read as follows:
   (4) THE COMMISSIONER MAY BY  REGULATION  OR  INSTRUCTION  REQUIRE  THE
 FILING OF A REPORT ANNUALLY BY THE COMPTROLLER OR PROGRAM MANAGER OF THE
 NEW   YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM, OR THEIR DESIGNEE,
 SETTING FORTH THE NAMES AND IDENTIFICATION NUMBERS  OF  ACCOUNT  OWNERS,
 DESIGNATED  BENEFICIARIES  AND  DISTRIBUTEES OF NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE PROGRAM ACCOUNTS,  THE  AMOUNTS  CONTRIBUTED  TO  SUCH
 ACCOUNTS,  THE  AMOUNTS DISTRIBUTED FROM SUCH ACCOUNTS AND THE NATURE OF
 SUCH DISTRIBUTIONS AS QUALIFIED WITHDRAWALS OR AS WITHDRAWALS OTHER THAN
 QUALIFIED WITHDRAWALS, AND ANY SUCH OTHER INFORMATION AS THE COMMISSION-
 ER MAY REQUIRE REGARDING THE TAXATION  UNDER  THIS  ARTICLE  OF  AMOUNTS
 CONTRIBUTED  TO  OR  WITHDRAWN  FROM SUCH ACCOUNTS. THE COMMISSIONER MAY
 REQUIRE THAT ANY SUCH REPORT ALSO BE MADE TO THE ACCOUNT  OWNER,  DESIG-
 NATED BENEFICIARY OR DISTRIBUTEE OF ANY SUCH ACCOUNT.
   § 9. This act shall take effect immediately and shall apply to taxable
 years beginning after December 31, 2017.

co-Sponsors

View additional co-sponsors

2017-S2096B - Details

Current Committee:: Senate Veterans, Homeland Security And Military Affairs
Law Section:: Military Law
Laws Affected:: Add §216-a, Art 14 §§400 - 405, Mil L; add §82, St Fin L; amd §5205, CPLR; amd §§612 & 658, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S8148

2017-S2096B - Summary

Establishes the "New York's Own combat veterans healthcare choice program act" to establish tax free savings accounts to pay the healthcare costs of combat veterans on active duty during Operation Enduring Freedom or Operation Iraqi Freedom, until covered by the federal government; and directs the division of military and naval affairs to establish a registry of Afghanistan and Iraq veterans.

2017-S2096B - Sponsor Memo

                                 BILL NUMBER:  S2096B

 TITLE OF BILL :  An act to amend the military law, the state finance
law, the civil practice law and rules, the tax law and the executive
law, in relation to establishing the "New York's Own combat veterans
healthcare choice program act"

 PURPOSE :

This bill would authorize the creation of healthcare savings accounts
for New York resident combat veterans of the organized militia of the
State, who while on State Orders in a combat zone during the period
September 2011 to date, suffered injuries or disability, and who, upon
90 days of making application to the US Veterans Administration for
healthcare services related to those injuries or disability, have
still not received primary care or an appointment for primary care,
for those injuries or disability.

 SUMMARY OF PROVISIONS :

The health care savings accounts will be funded: 1) for a period of up
to three years by New York State in the amount of $5,000 per year;
and, 2) by State tax deductible contributions from the combat veteran
not to exceed $5,000 per year. The State's contributions to the
soldier's health care savings accounts will terminate upon the earlier
of: a) the combat veteran securing services from the VA for the

injuries or disability sustained in a combat zone; or, b) three years
after establishment of the account.

All "Qualified Expenditures" from the account for healthcare would
likewise be New York State tax deductible and would specifically
include drug and alcohol rehabilitation as well as PTSD. The combat
veteran has complete authority to choose the healthcare provider so
long as they are licensed by New York State. Much like the College
Savers program, the accounts would be administered by the State
Comptroller and unexpended funds would earn interest while on account

 JUSTIFICATION :

The healthcare savings account program is patterned on the very
successful "New York 529 College Savers" program and will provide New
York resident members of the organized militia who deployed with a New
York unit to a combat zone, a bridge to much needed healthcare when,
through no fault of the service member, they have been unable to
secure primary care, or an appointment with a US Veterans
Administration primary care physician on a timely basis.

The recently released report of the General Accounting Office noted
that the Veterans Choice Program created by Congress in 2014 has
failed to reduce the number of veterans waiting more than 30 days to
get an appointment for primary care at either a VA facility or with
one of the Veterans Choice providers as the law requires. In fact,
according to the GAO report there are 71,000 more veterans waiting
more than the 30 days than there was in May of 2015.

Among the hundreds of thousands of veterans waiting longer than 30
days are hundreds of New York resident Air and Army National Guard
combat veterans who sustained injuries or disabilities in a combat
zone on orders from The Governor and Adjutant General; and who,
despite efforts to secure primary care from the US Veterans
Administration, have been unable to schedule appointments. This
program will ensure they have healthcare until picked up by the
Veterans Administration.

The Governor and Adjutant General have issued over 14,300 Orders to
members of the Organized Militia of New York to serve in certified
combat zones since September 11, 2001. An undetermined number of these
orders were issued to service members who had previously deployed to a
combat zone.

While the Division of Military and Naval Affairs does not certify
disability ratings nor does it have any mechanism for tracking the
applications of personnel returning from a combat zone who have made
application to US Veterans Administration for healthcare services,
this bill would create a mechanism for New York State to take of its
own combat veterans for injuries or disability suffered while on State
Orders in a Combat Zone if the US Veterans Administration has failed
to provide the service member with an appointment with a primary care
physician within 90 days of requesting one.

 LEGISLATIVE HISTORY :

2016: S.8148

 FISCAL IMPLICATIONS :

It is not possible to determine the total annual cost of this bill
since the number of effected New York resident combat veterans who
would qualify cannot be estimated. However, the total number of combat
deployments is 14,353 and among this universe is a number of service
members with multiple deployments and still others who are not
residents of New York State. Available records indicate that the
percentage of all civilian veterans with a VA disability is just 16,6%
and the number of combat veterans applying for VA disability has
ranged from 8 % for Operation Enduring Freedom to a high of 30 % for
Operation Iraqi Freedom. Since it is likely that a number of New
York's combat injured or disabled soldiers and airmen have succeeded
in securing appointments with a VA primary care physicians, the number
qualified applicants is projected to be not more than 1,500.

Thus, the maximum fiscal impact would not exceed $7,500,000 per year
over the first three years. Since the benefit terminates after the
earlier of three years; or the VA's assumption of responsibility for
primary care, it is highly unlikely that fiscal impact will ever reach
this sum.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning after December 31, 2017.

2017-S2096B - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2096--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sens.  MURPHY,  CROCI, LARKIN, ORTT, CARLUCCI, GALLIVAN,
   GOLDEN, MARCHIONE, O'MARA, RANZENHOFER, SERINO, SEWARD --  read  twice
   and ordered printed, and when printed to be committed to the Committee
   on Veterans, Homeland Security and Military Affairs -- reported favor-
   ably  from said committee and committed to the Committee on Finance --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said committee -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the military law, the state finance law, the civil prac-
   tice law and rules, the tax law and the executive law, in relation  to
   establishing  the  "New  York's  Own combat veterans healthcare choice
   program act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York's Own combat veterans healthcare choice program act".
   § 2. The military law is amended by adding a new section 216-a to read
 as follows:
   § 216-A. MEDICAL CARE WHEN INJURED OR DISABLED IN COMBAT ZONE.  1. ANY
 NEW YORK RESIDENT MEMBER OF THE ORGANIZED MILITIA  WHO  SHALL,  WHEN  ON
 ACTIVE  DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF THE UNITED
 STATES DURING OPERATION ENDURING FREEDOM OR OPERATION IRAQI FREEDOM, FOR
 THREE HUNDRED SIXTY DAYS OR MORE ON ORDERS ISSUED BY THE  GOVERNOR,  THE
 COMMANDING  GENERAL  OF THE NEW YORK ARMY NATIONAL GUARD, THE COMMANDING
 OFFICER OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER  OF
 THE NAVAL MILITIA, RECEIVE ANY WOUND OR INJURY, OR INCUR OR CONTRACT ANY
 DISABILITY  OR  DISEASE,  BY  REASON  OF SUCH DUTY, OR WHO SHALL WITHOUT
 FAULT OR NEGLECT ON HIS  OR  HER  PART  BE  WOUNDED  OR  DISABLED  WHILE
 PERFORMING  ANY LAWFULLY ORDERED DUTY WHILE IN SUCH A COMBAT ZONE, WHICH
 SHALL INCAPACITATE HIM OR HER, AND WHO IS UNABLE TO  RECEIVE  TIMELY  OR
 ADEQUATE  HEALTHCARE  SERVICES  FROM  THE FEDERAL DEPARTMENT OF VETERANS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02315-04-7

 S. 2096--B                          2
 
 AFFAIRS WITHIN NINETY DAYS OF MAKING APPLICATION FOR SUCH SERVICES SHALL
 RECEIVE THE PAYMENT INTO SUCH SERVICE MEMBER'S NEW YORK COMBAT  VETERANS
 HEALTHCARE  CHOICE  ACCOUNT  ESTABLISHED PURSUANT TO ARTICLE FOURTEEN OF
 THIS  CHAPTER  FOR  CARE  AND MEDICAL TREATMENT IF AUTHORITY THEREFOR IS
 GRANTED BY THE ADJUTANT GENERAL, EXPENSES FOR SUCH    CARE  AND  MEDICAL
 ATTENDANCE  AS ARE NECESSARY FOR THE APPROPRIATE TREATMENT OF THE WOUND,
 INJURY, DISEASE OR DISABILITY MAY BE  PAID  FROM  THE  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE  ACCOUNT AS PROVIDED IN ARTICLE FOURTEEN OF
 THIS CHAPTER UNTIL TREATMENT IS PROVIDED BY THE FEDERAL VETERANS  ADMIN-
 ISTRATION,  OR THE INCAPACITY RESULTING FROM SUCH WOUND, INJURY, DISEASE
 OR DISABILITY CANNOT BE MATERIALLY IMPROVED BY FURTHER  CARE  OR  TREAT-
 MENT.  THE  DETERMINATION OF WHETHER SUCH INJURY OR DISEASE WAS INCURRED
 WHILE PERFORMING SUCH LAWFULLY ORDERED ACTIVE DUTY  IN  A  COMBAT  ZONE,
 DESIGNATED BY THE PRESIDENT OF THE UNITED STATES DURING OPERATION ENDUR-
 ING FREEDOM OR OPERATION IRAQI FREEDOM, SHALL BE IN ACCORDANCE WITH THIS
 SECTION AND SUCH REGULATIONS AS MAY BE PRESCRIBED BY THE ADJUTANT GENER-
 AL.
   2.  IF  CARE  FOR  SUCH  A  SERVICE MEMBER IS APPROVED BY THE ADJUTANT
 GENERAL AND THE SERVICE MEMBER SHALL HAVE  CREATED  A  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE ACCOUNT IN ACCORDANCE WITH ARTICLE FOURTEEN
 OF THIS CHAPTER, THE STATE SHALL MAKE A PAYMENT OF FIVE THOUSAND DOLLARS
 INTO SUCH SERVICE MEMBER'S COMBAT VETERANS  HEALTHCARE  CHOICE  ACCOUNT.
 SUCH PAYMENT SHALL NOT EXCEED FIVE THOUSAND DOLLARS IN ANY CALENDAR YEAR
 AND  SHALL  BE  DISCONTINUED UPON THE SERVICE MEMBER RECEIVING CARE FROM
 THE FEDERAL DEPARTMENT OF VETERANS AFFAIRS FOR THE INJURIES OR DISABILI-
 TIES SUSTAINED WHILE IN QUALIFIED STATE SERVICE.
   3. NONE OF THE BENEFITS PROVIDED BY SUBDIVISION ONE  OF  THIS  SECTION
 SHALL  BE  PAID OR ALLOWED UNLESS A CLAIM THEREFOR HAS BEEN PRESENTED TO
 THE ADJUTANT GENERAL WITHIN THREE YEARS AFTER THE DATE WHEN SUCH  WOUND,
 INJURY,  DISEASE OR DISABILITY WAS INCURRED, OR FROM THE DATE OF DISCOV-
 ERY OF SUCH WOUND, INJURY, DISEASE OR DISABILITY.  NONE OF THE  BENEFITS
 PROVIDED  BY SUBDIVISION ONE OF THIS SECTION SHALL BE PAID OR ALLOWED BY
 THE STATE FOR ANY PERIOD DURING WHICH SUCH MEMBER OF THE ORGANIZED MILI-
 TIA IS ENTITLED TO RECEIVE THE SAME AS A CHARGE AGAINST FEDERAL FUNDS.
   4. A. WHERE A CLAIM IS MADE UNDER THIS SECTION  THE  ADJUTANT  GENERAL
 WILL  MAKE A DETERMINATION AS TO WHETHER VALID APPLICATION OR ATTEMPT TO
 SCHEDULE AN APPOINTMENT TO FILE AN APPLICATION FOR CARE WAS MADE TO  THE
 FEDERAL  VETERANS  ADMINISTRATION  AND  WHETHER  NINETY  DAYS SHALL HAVE
 PASSED SINCE SUCH APPLICATION OR ATTEMPT WAS MADE. THE ADJUTANT  GENERAL
 MAY CAUSE EXAMINATIONS OF THE CLAIMANT TO BE MADE FROM TIME TO TIME BY A
 PHYSICIAN, SURGEON OR DENTIST DESIGNATED FOR THE PURPOSE BY THE ADJUTANT
 GENERAL,  AND HE OR SHE MAY DIRECT THE REMOVAL OF A CLAIMANT TO, AND HIS
 OR HER TREATMENT IN, A HOSPITAL DESIGNATED BY THE ADJUTANT GENERAL,  AND
 IF  THE  CLAIMANT REFUSES TO PERMIT ANY SUCH EXAMINATION OR IF HE OR SHE
 REFUSES TO GO TO SUCH HOSPITAL OR TO FOLLOW THE ADVICE GIVEN  OR  TREAT-
 MENT  PRESCRIBED FOR HIM OR HER THEREIN, HE OR SHE SHALL THEREBY FORFEIT
 AND BE BARRED FROM ALL RIGHT  TO  ANY  CLAIM  OR  ALLOWANCE  UNDER  THIS
 SECTION.
   B.  THE  ADJUTANT GENERAL MAY APPOINT A MEDICAL EXAMINER OR A BOARD OF
 THREE OFFICERS, AT LEAST ONE OF WHOM SHALL  BE  A  MEDICAL  OFFICER,  TO
 INQUIRE  INTO  THE MERITS OF ANY CLAIM PRESENTED UNDER THIS SECTION, AND
 TO RECOMMEND THE AMOUNT OR AMOUNTS, IF ANY, TO BE PAID OR ALLOWED  UNDER
 THIS  SECTION, OR HE OR SHE MAY, IN HIS OR HER DISCRETION, DETERMINE ANY
 CLAIM WITHOUT APPOINTING A MEDICAL EXAMINER OR BOARD AND FIX THE  AMOUNT
 TO  BE  PAID  OR  ALLOWED  UNDER  THIS SECTION. IF NO MEDICAL OFFICER IS

 S. 2096--B                          3
 
 AVAILABLE, SUCH MEDICAL EXAMINER OR MEDICAL OFFICER ON SUCH BOARD MAY BE
 A CIVILIAN PHYSICIAN, SURGEON OR DENTIST.
   C. A MEDICAL EXAMINER OR BOARD APPOINTED UNDER THIS SECTION SHALL HAVE
 THE  SAME  POWER TO TAKE EVIDENCE, ADMINISTER OATHS, ISSUE SUBPOENAS AND
 COMPEL WITNESSES TO ATTEND AND TESTIFY AND TO PRODUCE BOOKS AND  PAPERS,
 AND TO PUNISH THEIR FAILURE TO DO SO AS IS POSSESSED BY MILITARY COURTS.
   D.  THE  FINDINGS AND RECOMMENDATIONS OF THE MEDICAL EXAMINER OR BOARD
 SHALL  BE  SUBMITTED  TO  THE  ADJUTANT  GENERAL  WHO  MAY  RETURN   THE
 PROCEEDINGS  TO SUCH EXAMINER OR BOARD FOR RECONSIDERATION OR FOR TAKING
 FURTHER TESTIMONY AND WHO SHALL APPROVE OR DISAPPROVE THE CLAIM AND  FIX
 THE AMOUNT, IF ANY, TO BE PAID OR ALLOWED UNDER THIS SECTION. THE AMOUNT
 SO  FIXED  BY THE ADJUTANT GENERAL SHALL BE A CHARGE AGAINST AND BE PAID
 IN THE MANNER PROVIDED BY THIS SECTION, BY THE STATE.
   § 3. The military law is amended by adding a new article 14 to read as
 follows:
                                ARTICLE 14
         NEW YORK'S OWN COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 SECTION 400. PROGRAM ESTABLISHED.
         401. PURPOSE.
         402. DEFINITIONS.
         403. FUNCTIONS OF THE COMPTROLLER AND THE DIVISION.
         404. PROGRAM REQUIREMENTS; NEW YORK COMBAT  VETERANS  HEALTHCARE
                CHOICE ACCOUNT.
         405.  PROGRAM  LIMITATIONS;  NEW YORK COMBAT VETERANS HEALTHCARE
                CHOICE ACCOUNT.
   § 400. PROGRAM ESTABLISHED.  THERE IS HEREBY ESTABLISHED THE NEW  YORK
 COMBAT  VETERANS  HEALTHCARE  CHOICE  PROGRAM  AND SUCH PROGRAM SHALL BE
 KNOWN AND MAY BE CITED AS THE "NEW YORK'S OWN COMBAT VETERANS HEALTHCARE
 CHOICE PROGRAM".
   § 401. PURPOSE. THE PURPOSES OF THE NEW YORK COMBAT  VETERANS  HEALTH-
 CARE  CHOICE  PROGRAM  ARE  TO  AUTHORIZE  THE ESTABLISHMENT OF VETERANS
 HEALTHCARE CHOICE ACCOUNTS AND PROVIDE GUIDELINES FOR THE MAINTENANCE OF
 SUCH ACCOUNTS TO:
   1. ENABLE RESIDENT VETERAN MEMBERS OF THE ORGANIZED  MILITIA  OF  THIS
 STATE WHO WERE ON ACTIVE DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESI-
 DENT OF THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR OPERATION
 IRAQI  FREEDOM,  TO OBTAIN HEALTHCARE FROM THE PROVIDER OF THEIR CHOICE,
 WITH FUNDS FROM A NEW YORK COMBAT  VETERANS  HEALTHCARE  CHOICE  ACCOUNT
 FUNDED BY THE STATE AND THE SERVICE MEMBER IN ACCORDANCE WITH THIS ARTI-
 CLE,  WHEN  AFTER  NINETY DAYS OF MAKING APPLICATION TO OR ATTEMPTING TO
 SCHEDULE AN APPOINTMENT WITH THE  FEDERAL  VETERANS  ADMINISTRATION  FOR
 SUCH  CARE,  THE  SERVICE  MEMBER IS UNABLE TO SECURE TIMELY OR ADEQUATE
 HEALTHCARE SERVICES FOR INJURIES AND DISABILITIES SUSTAINED IN THE  LINE
 OF  ACTIVE DUTY IN SUCH A COMBAT ZONE, WHENEVER ORDERED INTO SUCH COMBAT
 ZONE FOR THREE HUNDRED SIXTY DAYS OR MORE BY THE GOVERNOR, THE  COMMAND-
 ING  GENERAL OF THE NEW YORK ARMY NATIONAL GUARD, THE COMMANDING OFFICER
 OF THE NEW YORK AIR NATIONAL GUARD OR  THE  COMMANDING  OFFICER  OF  THE
 NAVAL MILITIA;
   2. PROVIDE FUNDING FROM THE STATE FOR NEW YORK COMBAT VETERANS HEALTH-
 CARE  CHOICE  ACCOUNTS  IN  AN AMOUNT OF UP TO FIVE THOUSAND DOLLARS PER
 CALENDAR YEAR FOR A PERIOD NOT TO EXCEED THREE YEARS, WHEN IN ACCORDANCE
 WITH THIS ARTICLE, A QUALIFIED STATE RESIDENT COMBAT VETERAN  IS  UNABLE
 TO  SECURE  HEALTHCARE SERVICES WITHIN NINETY DAYS OF MAKING APPLICATION
 OR SCHEDULING AN APPOINTMENT  TO  MAKE  SUCH  AN  APPLICATION  FOR  SUCH
 SERVICES FROM THE FEDERAL VETERANS ADMINISTRATION; AND

 S. 2096--B                          4

   3.  TO  CREATE  A  STATE  PERSONAL  INCOME  TAX  DEDUCTION FOR AMOUNTS
 CONTRIBUTED BY QUALIFIED RESIDENT COMBAT VETERANS TO A NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT IN AN AMOUNT NOT TO EXCEED FIVE THOU-
 SAND DOLLARS PER CALENDAR YEAR AS PROVIDED IN THIS ARTICLE.
   § 402. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "ACCOUNT"  OR "NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT"
 SHALL MEAN AN INDIVIDUAL SAVINGS ACCOUNT ESTABLISHED IN ACCORDANCE  WITH
 THE PROVISIONS OF THIS ARTICLE.
   2.  "ACCOUNT  OWNER"  SHALL  MEAN  A PERSON WHO ENTERS INTO A NEW YORK
 COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT  AGREEMENT  PURSUANT  TO  THE
 PROVISIONS  OF  THIS ARTICLE, INCLUDING A PERSON WHO ENTERS INTO SUCH AN
 AGREEMENT AS A FIDUCIARY OR AGENT ON BEHALF OF A TRUST, ESTATE, PARTNER-
 SHIP, ASSOCIATION, COMPANY OR CORPORATION. THE ACCOUNT OWNER MAY ALSO BE
 THE DESIGNATED BENEFICIARY OF THE ACCOUNT.
   3. "DESIGNATED BENEFICIARY" SHALL MEAN, WITH RESPECT TO AN ACCOUNT  OR
 ACCOUNTS,  THE  INDIVIDUAL DESIGNATED AS THE INDIVIDUAL WHOSE HEALTHCARE
 EXPENSES ARE EXPECTED TO BE PAID FROM THE ACCOUNT OR ACCOUNTS.
   4. "FINANCIAL ORGANIZATION" SHALL MEAN AN ORGANIZATION  AUTHORIZED  TO
 DO  BUSINESS IN THE STATE OF NEW YORK AND (A) IS AN AUTHORIZED FIDUCIARY
 TO ACT AS A TRUSTEE PURSUANT TO THE PROVISIONS OF  AN  ACT  OF  CONGRESS
 ENTITLED  "EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT  OF 1974" AS SUCH
 PROVISIONS MAY BE AMENDED FROM TIME TO TIME, OR  AN  INSURANCE  COMPANY;
 AND  (B)(I)  IS  LICENSED  OR  CHARTERED  BY THE DEPARTMENT OF FINANCIAL
 SERVICES, (II) IS CHARTERED BY AN  AGENCY  OF  THE  FEDERAL  GOVERNMENT,
 (III)  IS  SUBJECT  TO THE JURISDICTION AND REGULATION OF THE SECURITIES
 AND EXCHANGE COMMISSION OF THE FEDERAL GOVERNMENT, OR (IV) IS ANY  OTHER
 ENTITY  OTHERWISE  AUTHORIZED  TO  ACT  IN  THIS STATE AS A TRUSTEE OF A
 HEALTH SAVINGS ACCOUNT PURSUANT TO THE PROVISIONS OF AN ACT OF  CONGRESS
 ENTITLED THE "MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION
 ACT", AS SUCH PROVISIONS MAY BE AMENDED FROM TIME TO TIME.
   5.  "ELIGIBLE  HEALTHCARE  INSTITUTION"  SHALL  MEAN  ANY  INSTITUTION
 LICENSED, CERTIFIED OR AUTHORIZED BY THE  STATE  TO  PROVIDE  HEALTHCARE
 SERVICES.
   6. "MEMBER OF FAMILY" SHALL MEAN A FAMILY MEMBER AS DEFINED IN SECTION
 529 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.
   7. "PROGRAM" SHALL MEAN THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
   8.  "QUALIFIED  HEALTHCARE  EXPENSES"  SHALL  MEAN ANY MEDICAL EXPENSE
 DEDUCTIBLE ON FEDERAL INCOME TAXES.
   9. "QUALIFIED STATE SERVICE" SHALL MEAN ACTIVE DUTY  SERVICE  RENDERED
 WHILE  BEING  ORDERED INTO A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF
 THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR  OPERATION  IRAQI
 FREEDOM,  FOR  THREE  HUNDRED  SIXTY  DAYS  OR MORE BY THE GOVERNOR, THE
 COMMANDING GENERAL OF THE NEW YORK ARMY NATIONAL GUARD,  THE  COMMANDING
 OFFICER  OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER OF
 THE NAVAL MILITIA.
   10. "QUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN ACCOUNT  TO
 PAY  THE QUALIFIED HEALTHCARE EXPENSES OF A SERVICE MEMBER OR DESIGNATED
 BENEFICIARY OF AN ACCOUNT AT AN ELIGIBLE HEALTHCARE INSTITUTION.
   11. "NONQUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN  ACCOUNT
 WHICH IS NOT:
   A. A QUALIFIED WITHDRAWAL; OR
   B.  A  WITHDRAWAL MADE AS THE RESULT OF THE DEATH OR DISABILITY OF THE
 DESIGNATED BENEFICIARY OF THE ACCOUNT.
   12. "DIVISION" SHALL MEAN THE DIVISION OF MILITARY AND NAVAL AFFAIRS.

 S. 2096--B                          5
 
   13. "COMPTROLLER" SHALL MEAN THE STATE COMPTROLLER.
   14.  "MANAGEMENT  CONTRACT"  SHALL  MEAN  THE CONTRACT EXECUTED BY THE
 COMPTROLLER AND A FINANCIAL ORGANIZATION SELECTED TO ACT AS A DEPOSITORY
 AND MANAGER OF THE PROGRAM.
   15. "NEW YORK COMBAT VETERANS  HEALTHCARE  CHOICE  ACCOUNT  AGREEMENT"
 SHALL MEAN AN AGREEMENT BETWEEN THE COMPTROLLER OR A FINANCIAL ORGANIZA-
 TION AND AN ACCOUNT OWNER.
   16.  "PROGRAM MANAGER" SHALL MEAN A FINANCIAL ORGANIZATION SELECTED BY
 THE COMPTROLLER TO ACT AS DEPOSITORY AND MANAGER OF THE PROGRAM.
   § 403. FUNCTIONS OF THE COMPTROLLER AND THE  DIVISION.  1.  THE  COMP-
 TROLLER AND THE DIVISION SHALL IMPLEMENT THE PROGRAM UNDER THE TERMS AND
 CONDITIONS ESTABLISHED BY THIS ARTICLE AND A MEMORANDUM OF UNDERSTANDING
 RELATING TO ANY TERMS OR CONDITIONS NOT OTHERWISE EXPRESSLY PROVIDED FOR
 IN THIS ARTICLE.
   2. IN FURTHERANCE OF SUCH IMPLEMENTATION THE MEMORANDUM OF UNDERSTAND-
 ING  SHALL  ADDRESS  THE AUTHORITY AND RESPONSIBILITY OF THE COMPTROLLER
 AND THE DIVISION TO:
   A. DEVELOP AND IMPLEMENT THE PROGRAM IN A MANNER CONSISTENT  WITH  THE
 PROVISIONS  OF THIS ARTICLE THROUGH RULES AND REGULATIONS ESTABLISHED IN
 ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT;
   B. ENGAGE THE SERVICES OF CONSULTANTS ON A CONTRACT BASIS FOR  RENDER-
 ING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
   C.  SEEK  RULINGS AND OTHER GUIDANCE FROM THE UNITED STATES DEPARTMENT
 OF TREASURY AND THE INTERNAL REVENUE SERVICE RELATING TO THE PROGRAM;
   D. MAKE CHANGES TO THE PROGRAM REQUIRED FOR THE  PARTICIPANTS  IN  THE
 PROGRAM  TO OBTAIN THE FEDERAL INCOME TAX BENEFITS OR TREATMENT PROVIDED
 FOR HEALTH SAVINGS ACCOUNTS;
   E. CHARGE, IMPOSE AND COLLECT ADMINISTRATIVE FEES AND SERVICE  CHARGES
 IN  CONNECTION  WITH  ANY AGREEMENT, CONTRACT OR TRANSACTION RELATING TO
 THE PROGRAM;
   F. DEVELOP MARKETING PLANS AND PROMOTION MATERIAL;
   G. ESTABLISH THE METHODS BY WHICH THE FUNDS HELD IN SUCH  ACCOUNTS  BE
 DISPERSED;
   H.  ESTABLISH  THE METHOD BY WHICH FUNDS SHALL BE ALLOCATED TO PAY FOR
 ADMINISTRATIVE COSTS; AND
   I. DO ALL THINGS NECESSARY AND PROPER TO CARRY  OUT  THE  PURPOSES  OF
 THIS ARTICLE.
   §  404.  PROGRAM  REQUIREMENTS;  NEW  YORK  COMBAT VETERANS HEALTHCARE
 CHOICE ACCOUNT. 1. NEW YORK COMBAT VETERANS HEALTHCARE  CHOICE  ACCOUNTS
 ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS ARTICLE SHALL BE GOVERNED
 BY THE PROVISIONS OF THIS SECTION.
   2.  A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT MAY BE OPENED
 BY ANY PERSON WHO DESIRES TO SAVE MONEY FOR THE PAYMENT OF THE QUALIFIED
 HEALTHCARE EXPENSES OF THE DESIGNATED BENEFICIARY. AN ACCOUNT OWNER  MAY
 DESIGNATE  ANOTHER  QUALIFIED  SERVICE  MEMBER AS SUCCESSOR OWNER OF THE
 ACCOUNT IN THE EVENT OF THE DEATH OF THE ORIGINAL  ACCOUNT  OWNER.  SUCH
 PERSON  WHO  OPENS AN ACCOUNT OR ANY SUCCESSOR OWNER SHALL BE CONSIDERED
 THE ACCOUNT OWNER.
   A. AN APPLICATION FOR SUCH ACCOUNT SHALL BE IN THE FORM PRESCRIBED  BY
 THE PROGRAM AND CONTAIN THE FOLLOWING:
   (I) THE NAME, ADDRESS AND SOCIAL SECURITY NUMBER OR EMPLOYER IDENTIFI-
 CATION NUMBER OF THE ACCOUNT OWNER;
   (II) THE DESIGNATION OF A DESIGNATED BENEFICIARY;
   (III)  THE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OF THE DESIGNATED
 BENEFICIARY; AND
   (IV) SUCH OTHER INFORMATION AS THE PROGRAM MAY REQUIRE.

 S. 2096--B                          6
 
   B. THE COMPTROLLER AND THE DIVISION MAY ESTABLISH A  NOMINAL  FEE  FOR
 SUCH APPLICATION.
   3.  ANY PERSON, INCLUDING THE ACCOUNT OWNER, MAY MAKE CONTRIBUTIONS TO
 THE ACCOUNT AFTER THE ACCOUNT IS OPENED.
   4. CONTRIBUTIONS TO ACCOUNTS MAY BE MADE ONLY IN CASH.
   5. AN ACCOUNT OWNER MAY MAKE A QUALIFIED WITHDRAWAL OF ALL OR PART  OF
 THE  BALANCE FROM AN ACCOUNT ON SIXTY DAYS NOTICE OR SUCH SHORTER PERIOD
 AS MAY BE AUTHORIZED UNDER RULES GOVERNING THE PROGRAM. SUCH RULES SHALL
 INCLUDE PROVISIONS THAT WILL GENERALLY ENABLE THE  DETERMINATION  AS  TO
 WHETHER  A  WITHDRAWAL IS A NONQUALIFIED WITHDRAWAL OR A QUALIFIED WITH-
 DRAWAL.
   6. AN ACCOUNT OWNER  MAY  CHANGE  THE  DESIGNATED  BENEFICIARY  OF  AN
 ACCOUNT  TO  A SERVICE MEMBER WHO IS A MEMBER OF THE FAMILY OF THE PRIOR
 DESIGNATED BENEFICIARY IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY  THE
 MEMORANDUM  OF  UNDERSTANDING PURSUANT TO THE PROVISIONS OF SECTION FOUR
 HUNDRED THREE OF THIS ARTICLE.
   7. THE PROGRAM SHALL PROVIDE SEPARATE ACCOUNTING FOR  EACH  DESIGNATED
 BENEFICIARY.
   8.  NO ACCOUNT OWNER OR DESIGNATED BENEFICIARY OF ANY ACCOUNT SHALL BE
 PERMITTED TO DIRECT THE INVESTMENT OF ANY CONTRIBUTIONS TO AN ACCOUNT OR
 THE EARNINGS THEREON MORE THAN TWO TIMES IN ANY CALENDAR YEAR.
   9. NEITHER AN ACCOUNT OWNER NOR A DESIGNATED BENEFICIARY  MAY  USE  AN
 INTEREST IN AN ACCOUNT AS SECURITY FOR A LOAN. ANY PLEDGE OF AN INTEREST
 IN AN ACCOUNT SHALL BE OF NO FORCE AND EFFECT.
   10.  THE  COMPTROLLER SHALL PROMULGATE RULES OR REGULATIONS TO PREVENT
 CONTRIBUTIONS ON BEHALF OF A DESIGNATED  BENEFICIARY  IN  EXCESS  OF  AN
 AMOUNT  THAT  WOULD CAUSE THE AGGREGATE ACCOUNT BALANCE FOR ALL ACCOUNTS
 FOR A DESIGNATED BENEFICIARY TO EXCEED A  MAXIMUM  ACCOUNT  BALANCE,  AS
 ESTABLISHED FROM TIME TO TIME BY THE COMPTROLLER AND THE DIVISION ON THE
 BASIS  OF  HEALTHCARE  COSTS  IN  THE STATE, WITH ADEQUATE SAFEGUARDS TO
 PREVENT MORE CONTRIBUTIONS THAN NECESSARY TO PROVIDE FOR  THE  QUALIFIED
 HEALTHCARE COSTS OF THE BENEFICIARY, AS REQUIRED TO MAINTAIN THE PROGRAM
 AS A "QUALIFIED HEALTH SAVINGS PROGRAM" PURSUANT TO FEDERAL LAW.
   11.  A. IF THERE IS ANY DISTRIBUTION FROM AN ACCOUNT TO ANY INDIVIDUAL
 OR FOR THE BENEFIT OF  ANY  INDIVIDUAL  DURING  A  CALENDAR  YEAR,  SUCH
 DISTRIBUTION  SHALL  BE REPORTED TO THE INTERNAL REVENUE SERVICE AND THE
 ACCOUNT OWNER, THE DESIGNATED BENEFICIARY, OR  THE  DISTRIBUTEE  TO  THE
 EXTENT REQUIRED BY FEDERAL LAW OR REGULATION.
   B.  STATEMENTS  SHALL  BE PROVIDED TO EACH ACCOUNT OWNER AT LEAST ONCE
 EACH YEAR WITHIN SIXTY DAYS AFTER THE END OF THE TWELVE MONTH PERIOD  TO
 WHICH  THEY  RELATE. THE STATEMENT SHALL IDENTIFY THE CONTRIBUTIONS MADE
 DURING A PRECEDING TWELVE MONTH PERIOD, THE TOTAL CONTRIBUTIONS MADE  TO
 THE  ACCOUNT  THROUGH THE END OF THE PERIOD, THE VALUE OF THE ACCOUNT AT
 THE END OF SUCH PERIOD, DISTRIBUTIONS MADE DURING SUCH  PERIOD  AND  ANY
 OTHER  INFORMATION  THAT THE COMPTROLLER SHALL REQUIRE TO BE REPORTED TO
 THE ACCOUNT OWNER.
   C. STATEMENTS AND INFORMATION RELATING TO ACCOUNTS SHALL  BE  PREPARED
 AND FILED TO THE EXTENT REQUIRED BY FEDERAL AND STATE TAX LAW.
   12.  A.  A  LOCAL  GOVERNMENT  OR  ORGANIZATION  DESCRIBED  IN SECTION
 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, MAY OPEN AND
 BECOME THE ACCOUNT OWNER OF AN  ACCOUNT  TO  FUND  QUALIFIED  HEALTHCARE
 EXPENSES  FOR  PERSONS  WHOSE IDENTITY WILL BE DETERMINED UPON DISBURSE-
 MENT.
   B. IN THE CASE OF ANY ACCOUNT OPENED PURSUANT TO PARAGRAPH A  OF  THIS
 SUBDIVISION THE REQUIREMENT SET FORTH IN SUBDIVISION TWO OF THIS SECTION
 THAT  A  DESIGNATED  BENEFICIARY BE DESIGNATED WHEN AN ACCOUNT IS OPENED

 S. 2096--B                          7
 
 SHALL NOT APPLY AND EACH INDIVIDUAL WHO RECEIVES  AN  INTEREST  IN  SUCH
 ACCOUNT  AS  A  QUALIFIED HEALTHCARE EXPENSE GRANT SHALL BE TREATED AS A
 DESIGNATED BENEFICIARY WITH RESPECT TO SUCH INTEREST.
   13.  AN ANNUAL FEE MAY BE IMPOSED UPON THE ACCOUNT OWNER FOR THE MAIN-
 TENANCE OF THE ACCOUNT.
   14. THE PROGRAM SHALL DISCLOSE THE FOLLOWING INFORMATION IN WRITING TO
 EACH ACCOUNT OWNER AND PROSPECTIVE ACCOUNT OWNER OF A  NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT:
   A.  THE TERMS AND CONDITIONS FOR PURCHASING A NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE ACCOUNT;
   B. ANY RESTRICTIONS ON THE SUBSTITUTION OF BENEFICIARIES;
   C. THE PERSON OR ENTITY ENTITLED TO  TERMINATE  THE  NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   D.  THE PERIOD OF TIME DURING WHICH A BENEFICIARY MAY RECEIVE BENEFITS
 UNDER THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   E. THE TERMS AND  CONDITIONS  UNDER  WHICH  MONEY  MAY  BE  WHOLLY  OR
 PARTIALLY WITHDRAWN FROM THE PROGRAM, INCLUDING, BUT NOT LIMITED TO, ANY
 REASONABLE CHARGES AND FEES THAT MAY BE IMPOSED FOR WITHDRAWAL;
   F.  THE PROBABLE TAX CONSEQUENCES ASSOCIATED WITH CONTRIBUTIONS TO AND
 DISTRIBUTIONS FROM ACCOUNTS; AND
   G. ALL OTHER RIGHTS AND OBLIGATIONS PURSUANT TO NEW YORK COMBAT VETER-
 ANS HEALTHCARE CHOICE ACCOUNT AGREEMENTS, AND ANY  OTHER  TERMS,  CONDI-
 TIONS,  AND  PROVISIONS DEEMED NECESSARY AND APPROPRIATE BY THE TERMS OF
 THE MEMORANDUM OF UNDERSTANDING ENTERED INTO PURSUANT  TO  SECTION  FOUR
 HUNDRED THREE OF THIS ARTICLE.
   15.  NEW  YORK  COMBAT  VETERANS  HEALTHCARE CHOICE ACCOUNT AGREEMENTS
 SHALL BE SUBJECT TO SECTION  FOURTEEN-C  OF  THE  BANKING  LAW  AND  THE
 "TRUTH-IN-SAVINGS" REGULATIONS PROMULGATED THEREUNDER.
   16. NOTHING IN THIS ARTICLE OR IN ANY NEW YORK COMBAT VETERANS HEALTH-
 CARE  CHOICE  ACCOUNT  AGREEMENT  ENTERED  INTO PURSUANT TO THIS ARTICLE
 SHALL BE CONSTRUED AS A GUARANTEE BY THE STATE OR ANY HEALTHCARE PROVID-
 ER THAT A BENEFICIARY WILL BE ADMITTED TO AN ELIGIBLE HEALTHCARE  INSTI-
 TUTION, OR, UPON ADMISSION TO AN ELIGIBLE HEALTHCARE INSTITUTION WILL BE
 PERMITTED TO REMAIN IN SUCH ELIGIBLE HEALTHCARE INSTITUTION.
   § 405. PROGRAM LIMITATIONS; NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT. 1. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO:
   A.  GIVE  ANY DESIGNATED BENEFICIARY ANY RIGHTS OR LEGAL INTEREST WITH
 RESPECT TO AN ACCOUNT UNLESS THE DESIGNATED BENEFICIARY IS  THE  ACCOUNT
 OWNER;
   B.  GUARANTEE  THAT  A  DESIGNATED  BENEFICIARY WILL BE ADMITTED TO AN
 ELIGIBLE HEALTHCARE INSTITUTION;
   C. CREATE STATE RESIDENCY FOR AN INDIVIDUAL MERELY BECAUSE  THE  INDI-
 VIDUAL IS A DESIGNATED BENEFICIARY; OR
   D. GUARANTEE THAT AMOUNTS SAVED PURSUANT TO THE PROGRAM WILL BE SUFFI-
 CIENT TO COVER THE QUALIFIED HEALTHCARE EXPENSES OF A DESIGNATED BENEFI-
 CIARY.
   2.  A.  NOTHING IN THIS ARTICLE SHALL CREATE OR BE CONSTRUED TO CREATE
 ANY OBLIGATION OF THE COMPTROLLER, THE STATE, OR ANY AGENCY  OR  INSTRU-
 MENTALITY OF THE STATE TO GUARANTEE FOR THE BENEFIT OF ANY ACCOUNT OWNER
 OR DESIGNATED BENEFICIARY WITH RESPECT TO:
   (I) THE RATE OF INTEREST OR OTHER RETURN ON ANY ACCOUNT; AND
   (II) THE PAYMENT OF INTEREST OR OTHER RETURN ON ANY ACCOUNT.
   B.  THE  COMPTROLLER  AND  THE  DIVISION  BY  RULE OR REGULATION SHALL
 PROVIDE THAT EVERY CONTRACT, APPLICATION, DEPOSIT SLIP, OR OTHER SIMILAR
 DOCUMENT THAT MAY BE USED  IN  CONNECTION  WITH  A  CONTRIBUTION  TO  AN
 ACCOUNT  CLEARLY  INDICATE  THAT THE ACCOUNT IS NOT INSURED BY THE STATE

 S. 2096--B                          8
 
 AND NEITHER THE PRINCIPAL DEPOSITED NOR THE INVESTMENT RETURN IS GUARAN-
 TEED BY THE STATE.
   §  4.  The  state finance law is amended by adding a new section 82 to
 read as follows:
   § 82. NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM  TRUST  FUND.
 1.  THERE  IS  HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE STATE COMP-
 TROLLER A SPECIAL FUND TO BE KNOWN  AS  THE  NEW  YORK  COMBAT  VETERANS
 HEALTHCARE  CHOICE PROGRAM TRUST FUND. ALL PAYMENTS FROM SUCH FUND SHALL
 BE MADE IN ACCORDANCE WITH ARTICLE FOURTEEN OF THE MILITARY LAW AND  THE
 MEMORANDUM  OF  UNDERSTANDING ENTERED INTO PURSUANT THERETO ON THE AUDIT
 OF THE STATE COMPTROLLER.
   2. THE FUND SHALL BE A TRUST FUND AND SHALL CONSIST OF A TRUST ACCOUNT
 AND AN OPERATING  ACCOUNT.  THE  TRUST  ACCOUNT  SHALL  INCLUDE  AMOUNTS
 RECEIVED  BY  THE  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE PROGRAM
 PURSUANT TO NEW YORK COMBAT VETERANS HEALTHCARE  CHOICE  ACCOUNT  AGREE-
 MENTS,  ADMINISTRATIVE  CHARGES, FEES, AND ALL OTHER AMOUNTS RECEIVED BY
 THE PROGRAM FROM OTHER  SOURCES,  AND  INTEREST  AND  INVESTMENT  INCOME
 EARNED BY THE TRUST FUND. THE COMPTROLLER SHALL, FROM TIME TO TIME, MAKE
 TRANSFERS  FROM THE TRUST ACCOUNT TO THE OPERATING ACCOUNT FOR THE IMME-
 DIATE PAYMENT OF OBLIGATIONS UNDER NEW YORK COMBAT  VETERANS  HEALTHCARE
 CHOICE  ACCOUNT  AGREEMENTS, OPERATING EXPENSES AND ADMINISTRATIVE COSTS
 OF THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT.  ADMINISTRA-
 TIVE  COSTS  SHALL BE PAID OUT OF THE OPERATING ACCOUNT ACCORDING TO THE
 TERMS AND CONDITIONS ESTABLISHED PURSUANT TO THE PROVISIONS  OF  SECTION
 FOUR HUNDRED THREE OF THE MILITARY LAW.
   3.  (A)  THE  COMPTROLLER,  AS TRUSTEE, SHALL INVEST THE ASSETS OF THE
 TRUST FUND IN INVESTMENTS AUTHORIZED BY ARTICLE FOUR-A OF THE RETIREMENT
 AND SOCIAL SECURITY LAW, PROVIDED HOWEVER, THAT:
   (I) THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION  ONE
 HUNDRED  SEVENTY-SEVEN  OF  THE RETIREMENT AND SOCIAL SECURITY LAW SHALL
 NOT APPLY EXCEPT FOR THE FIRST CLAUSE OF SUBPARAGRAPH (II) OF SUCH PARA-
 GRAPH; AND
   (II) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION  SEVEN  OF  SECTION
 ONE  HUNDRED  SEVENTY-SEVEN OF THE RETIREMENT AND SOCIAL SECURITY LAW OR
 ANY OTHER LAW TO THE CONTRARY, THE ASSETS  OF  THE  TRUST  FUND  MAY  BE
 INVESTED  IN  ANY  FUNDING  AGREEMENT  ISSUED IN ACCORDANCE WITH SECTION
 THREE THOUSAND TWO HUNDRED TWENTY-TWO OF THE INSURANCE LAW BY A DOMESTIC
 LIFE INSURANCE COMPANY OR A FOREIGN LIFE INSURANCE COMPANY  DOING  BUSI-
 NESS IN THIS STATE, SUBJECT TO THE FOLLOWING:
   (1) SUCH A FUNDING AGREEMENT MAY PROVIDE FOR A GUARANTEED MINIMUM RATE
 OF RETURN;
   (2)  SUCH  A  FUNDING  AGREEMENT MAY BE ALLOCATED AS EITHER A SEPARATE
 ACCOUNT OR A GENERAL ACCOUNT OF  THE  ISSUER,  AS  THE  COMPTROLLER  MAY
 DECIDE;
   (3)  TOTAL INVESTMENTS OF THE TRUST FUND PURSUANT TO THIS PARAGRAPH IN
 ANY FUNDING AGREEMENTS ISSUED BY A SINGLE LIFE INSURANCE  COMPANY  WHICH
 ARE  ALLOCATED  AS  A  GENERAL  ACCOUNT  OF THE ISSUER SHALL NOT, IN THE
 AGGREGATE, EXCEED THREE HUNDRED FIFTY MILLION DOLLARS; AND
   (4) NO ASSETS OF THE TRUST FUND SHALL BE INVESTED IN ANY SUCH  FUNDING
 AGREEMENT  UNLESS,  AT  THE  TIME  OF SUCH INVESTMENT, THE GENERAL OBLI-
 GATIONS OR FINANCIAL STRENGTH OF THE ISSUER  HAVE  RECEIVED  EITHER  THE
 HIGHEST  OR  SECOND  HIGHEST  RATING BY TWO NATIONALLY RECOGNIZED RATING
 SERVICES OR BY ONE NATIONALLY RECOGNIZED RATING  SERVICE  IN  THE  EVENT
 THAT ONLY ONE SUCH SERVICE RATES SUCH OBLIGATIONS.
   (B)  TRUST FUND ASSETS SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMIN-
 GLED WITH OTHER ASSETS, EXCEPT AS PROVIDED IN THIS  SECTION.  THE  COMP-

 S. 2096--B                          9
 
 TROLLER  MAY  ENTER  INTO CONTRACTS TO PROVIDE FOR INVESTMENT ADVICE AND
 MANAGEMENT, CUSTODIAL SERVICES, AND OTHER PROFESSIONAL SERVICES FOR  THE
 ADMINISTRATION AND INVESTMENT OF THE PROGRAM. ADMINISTRATIVE FEES, COSTS
 AND EXPENSES, INCLUDING INVESTMENT FEES AND EXPENSES, SHALL BE PAID FROM
 THE ASSETS OF THE FUND.
   4.  THE  COMPTROLLER SHALL PROVIDE FOR THE ADMINISTRATION OF THE TRUST
 FUND,  INCLUDING  MAINTAINING  PARTICIPANT  RECORDS  AND  ACCOUNTS,  AND
 PROVIDING  ANNUAL  AUDITED  REPORTS.  THE  COMPTROLLER  MAY  ENTER  INTO
 CONTRACTS TO PROVIDE ADMINISTRATIVE SERVICES AND REPORTING.
   § 5. Section 5205 of the civil practice law and rules  is  amended  by
 adding a new subdivision (p) to read as follows:
   (P)  EXEMPTION  FOR NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 TRUST FUND PAYMENT MONIES. MONIES IN  AN  ACCOUNT  CREATED  PURSUANT  TO
 ARTICLE  FOURTEEN OF THE MILITARY LAW ARE EXEMPT FROM APPLICATION TO THE
 SATISFACTION OF A MONEY JUDGMENT.
   § 6. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 42 to read as follows:
   (42) DISTRIBUTIONS RECEIVED DURING THE TAXABLE YEAR BY A  DISTRIBUTION
 OF  A  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE ACCOUNT ESTABLISHED
 PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW,  TO  THE  EXTENT  SUCH
 DISTRIBUTIONS ARE NOT QUALIFIED WITHDRAWALS WITHIN THE MEANING OF SUBDI-
 VISION TEN OF SECTION FOUR HUNDRED TWO OF THE MILITARY LAW.
   § 7. Subsection (c) of section 612 of the tax law is amended by adding
 two new paragraphs 42 and 43 to read as follows:
   (42) CONTRIBUTIONS MADE DURING THE TAXABLE YEAR BY AN ACCOUNT OWNER TO
 ONE  OR  MORE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNTS ESTAB-
 LISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO  THE  EXTENT
 NOT  DEDUCTIBLE  OR ELIGIBLE FOR CREDIT FOR FEDERAL INCOME TAX PURPOSES,
 PROVIDED, HOWEVER, THE EXCLUSION PROVIDED FOR IN  THIS  PARAGRAPH  SHALL
 NOT EXCEED FIVE THOUSAND DOLLARS FOR AN INDIVIDUAL OR HEAD OF HOUSEHOLD,
 AND FOR MARRIED COUPLES WHO FILE JOINT TAX RETURNS, SHALL NOT EXCEED TEN
 THOUSAND DOLLARS; PROVIDED, FURTHER, THAT SUCH EXCLUSION SHALL BE AVAIL-
 ABLE ONLY TO THE ACCOUNT OWNER AND NOT TO ANY OTHER PERSON.
   (43)  DISTRIBUTIONS  FROM A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT ESTABLISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO
 THE EXTENT INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES.
   § 8. Subsection (d) of section 658 of the tax law is amended by adding
 a new paragraph 4 to read as follows:
   (4) THE COMMISSIONER MAY BY  REGULATION  OR  INSTRUCTION  REQUIRE  THE
 FILING OF A REPORT ANNUALLY BY THE COMPTROLLER OR PROGRAM MANAGER OF THE
 NEW   YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM, OR THEIR DESIGNEE,
 SETTING FORTH THE NAMES AND IDENTIFICATION NUMBERS  OF  ACCOUNT  OWNERS,
 DESIGNATED  BENEFICIARIES  AND  DISTRIBUTEES OF NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE PROGRAM ACCOUNTS,  THE  AMOUNTS  CONTRIBUTED  TO  SUCH
 ACCOUNTS,  THE  AMOUNTS DISTRIBUTED FROM SUCH ACCOUNTS AND THE NATURE OF
 SUCH DISTRIBUTIONS AS QUALIFIED WITHDRAWALS OR AS WITHDRAWALS OTHER THAN
 QUALIFIED WITHDRAWALS, AND ANY SUCH OTHER INFORMATION AS THE COMMISSION-
 ER MAY REQUIRE REGARDING THE TAXATION  UNDER  THIS  ARTICLE  OF  AMOUNTS
 CONTRIBUTED  TO  OR  WITHDRAWN  FROM SUCH ACCOUNTS. THE COMMISSIONER MAY
 REQUIRE THAT ANY SUCH REPORT ALSO BE MADE TO THE ACCOUNT  OWNER,  DESIG-
 NATED BENEFICIARY OR DISTRIBUTEE OF ANY SUCH ACCOUNT.
   §  9.  Section  190  of  the  executive law is amended by adding a new
 subdivision 5 to read as follows:
   5. THE DIVISION OF MILITARY AND NAVAL AFFAIRS SHALL,  IN  CONSULTATION
 WITH  THE FEDERAL DEPARTMENT OF DEFENSE, ESTABLISH AND MAINTAIN A REGIS-
 TRY OF STATE RESIDENTS WHO ARE  HONORABLY  DISCHARGED  VETERANS  OF  THE

 S. 2096--B                         10
 
 ARMED FORCES OF THE UNITED STATES, AND WHO SERVED ON REGULAR ACTIVE DUTY
 (OTHER THAN FOR TRAINING) DURING PART OF ONE OF THE FOLLOWING PERIODS:
   (A)  FROM  SEPTEMBER EIGHTEENTH, TWO THOUSAND ONE UNTIL THE END OF THE
 UNITED STATES MILITARY EFFORTS IN AFGHANISTAN; OR
   (B) FROM OCTOBER SIXTEENTH, TWO THOUSAND TWO  UNTIL  THE  END  OF  THE
 UNITED STATES MILITARY EFFORTS IN IRAQ.
   THE INFORMATION IN SUCH REGISTRY SHALL BE DEEMED CONFIDENTIAL, AND MAY
 ONLY  BE  ACCESSED  BY  SUCH VETERAN FOR PURPOSES OF PROOF OF HIS OR HER
 MILITARY SERVICE.
   § 10. This act shall take effect immediately and shall apply to  taxa-
 ble years beginning after December 31, 2017.

co-Sponsors

View additional co-sponsors

2017-S2096C - Details

Current Committee:: Senate Veterans, Homeland Security And Military Affairs
Law Section:: Military Law
Laws Affected:: Add §216-a, Art 14 §§400 - 405, Mil L; add §82, St Fin L; amd §5205, CPLR; amd §§612 & 658, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S8148

2017-S2096C - Summary

Establishes the "New York's Own combat veterans healthcare choice program act" to establish tax free savings accounts to pay the healthcare costs of combat veterans on active duty during Operation Enduring Freedom or Operation Iraqi Freedom, until covered by the federal government; and directs the division of military and naval affairs to establish a registry of Afghanistan and Iraq veterans.

2017-S2096C - Sponsor Memo

                                 BILL NUMBER:  S2096C

 TITLE OF BILL :

An act to amend the military law, the state finance law, the civil
practice law and rules, the tax law and the executive law, in relation
to establishing the "New York's Own combat veterans healthcare choice
program act"

 PURPOSE :

This bill would authorize the creation of healthcare savings accounts
for New York resident combat veterans of the organized militia of the
State, who while on State Orders in a combat zone during the period
September 2011 to date, suffered injuries or disability, and who, upon
90 days of making application to the US Veterans Administration for
healthcare services related to those injuries or disability, have
still not received primary care or an appointment for primary care,
for those injuries or disability.

 SUMMARY OF PROVISIONS :

The health care savings accounts will be funded: 1) for a period of up
to three years by New York State in the amount of $5,000 per year;
and, 2) by State tax deductible contributions from the combat veteran
not to exceed $5,000 per year. The State's contributions to the

soldier's health care savings accounts will terminate upon the earlier
of: a) the combat veteran securing services from the VA for the
injuries or disability sustained in a combat zone; or, b) three years
after establishment of the account.

All "Qualified Expenditures" from the account for healthcare would
likewise be New York State tax deductible and would specifically
include drug and alcohol rehabilitation as well as PTSD. The combat
veteran has complete authority to choose the healthcare provider so
long as they are licensed by New York State. Much like the College
Savers program, the accounts would be administered by the State
Comptroller and unexpended funds would earn interest while on account

 JUSTIFICATION :

The healthcare savings account program is patterned on the very
successful "New York 529 College Savers" program and will provide New
York resident members of the organized militia who deployed with a New
York unit to a combat zone, a bridge to much needed healthcare when,
through no fault of the service member, they have been unable to
secure primary care, or an appointment with a US Veterans
Administration primary care physician on a timely basis.

The recently released report of the General Accounting Office noted
that the Veterans Choice Program created by Congress in 2014 has
failed to reduce the number of veterans waiting more than 30 days to
get an appointment for primary care at either a VA facility or with
one of the Veterans Choice providers as the law requires. In fact,
according to the GAO report there are 71,000 more veterans waiting
more than the 30 days than there was in May of 2015.

Among the hundreds of thousands of veterans waiting longer than 30
days are hundreds of New York resident Air and Army National Guard
combat veterans who sustained injuries or disabilities in a combat
zone on orders from The Governor and Adjutant General; and who,
despite efforts to secure primary care from the US Veterans
Administration, have been unable to schedule appointments. This
program will ensure they have healthcare until picked up by the
Veterans Administration.

The Governor and Adjutant General have issued over 14,300 Orders to
members of the Organized Militia of New York to serve in certified
combat zones since September 11, 2001. An undetermined number of these
orders were issued to service members who had previously deployed to a
combat zone.

While the Division of Military and Naval Affairs does not certify
disability ratings nor does it have any mechanism for tracking the
applications of personnel returning from a combat zone who have made
application to US Veterans Administration for healthcare services,
this bill would create a mechanism for New York State to take of its
own combat veterans for injuries or disability suffered while on State
Orders in a Combat Zone if the US Veterans Administration has failed
to provide the service member with an appointment with a primary care
physician within 90 days of requesting one.

 LEGISLATIVE HISTORY :

2016: S.8148

 FISCAL IMPLICATIONS :

It is not possible to determine the total annual cost of this bill
since the number of effected New York resident combat veterans who
would qualify cannot be estimated. However, the total number of combat
deployments is 14,353 and among this universe is a number of service
members with multiple deployments and still others who are not
residents of New York State. Available records indicate that the
percentage of all civilian veterans with a VA disability is just 16,6%
and the number of combat veterans applying for VA disability has
ranged from 8 % for Operation Enduring Freedom to a high of 30 % for
Operation Iraqi Freedom. Since it is likely that a number of New
York's combat injured or disabled soldiers and airmen have succeeded
in securing appointments with a VA primary care physicians, the number
qualified applicants is projected to be not more than 1,500.

Thus, the maximum fiscal impact would not exceed $7,500,000 per year
over the first three years. Since the benefit terminates after the
earlier of three years; or the VA's assumption of responsibility for
primary care, it is highly unlikely that fiscal impact will ever reach
this sum.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning after December 31, 2017.

2017-S2096C - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2096--C
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sens.  MURPHY,  CROCI, LARKIN, ORTT, CARLUCCI, GALLIVAN,
   GOLDEN, MARCHIONE, O'MARA, RANZENHOFER, SERINO, SEWARD --  read  twice
   and ordered printed, and when printed to be committed to the Committee
   on Veterans, Homeland Security and Military Affairs -- reported favor-
   ably  from said committee and committed to the Committee on Finance --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said committee -- committee discharged, bill amended,
   ordered reprinted as amended and  recommitted  to  said  committee  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the military law, the state finance law, the civil prac-
   tice law and rules, the tax law and the executive law, in relation  to
   establishing  the  "New  York's  Own combat veterans healthcare choice
   program act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York's Own combat veterans healthcare choice program act".
   § 2. The military law is amended by adding a new section 216-a to read
 as follows:
   § 216-A. MEDICAL CARE WHEN INJURED OR DISABLED IN COMBAT ZONE.  1. ANY
 NEW YORK RESIDENT MEMBER OF THE ORGANIZED MILITIA  WHO  SHALL,  WHEN  ON
 ACTIVE  DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF THE UNITED
 STATES DURING OPERATION ENDURING FREEDOM OR OPERATION IRAQI FREEDOM, FOR
 THREE HUNDRED SIXTY DAYS OR MORE ON ORDERS ISSUED BY THE  GOVERNOR,  THE
 COMMANDING  GENERAL  OF THE NEW YORK ARMY NATIONAL GUARD, THE COMMANDING
 OFFICER OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER  OF
 THE NAVAL MILITIA, RECEIVE ANY WOUND OR INJURY, OR INCUR OR CONTRACT ANY
 DISABILITY  OR  DISEASE,  BY  REASON  OF SUCH DUTY, OR WHO SHALL WITHOUT
 FAULT OR NEGLECT ON HIS  OR  HER  PART  BE  WOUNDED  OR  DISABLED  WHILE
 PERFORMING  ANY LAWFULLY ORDERED DUTY WHILE IN SUCH A COMBAT ZONE, WHICH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02315-06-7

 S. 2096--C                          2
 
 SHALL INCAPACITATE HIM OR HER, AND WHO IS UNABLE TO  RECEIVE  TIMELY  OR
 ADEQUATE  HEALTHCARE  SERVICES  FROM  THE FEDERAL DEPARTMENT OF VETERANS
 AFFAIRS WITHIN NINETY DAYS OF MAKING APPLICATION FOR SUCH SERVICES SHALL
 RECEIVE  THE PAYMENT INTO SUCH SERVICE MEMBER'S NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE ACCOUNT ESTABLISHED PURSUANT TO  ARTICLE  FOURTEEN  OF
 THIS  CHAPTER  FOR  CARE  AND MEDICAL TREATMENT IF AUTHORITY THEREFOR IS
 GRANTED BY THE ADJUTANT GENERAL, EXPENSES FOR SUCH    CARE  AND  MEDICAL
 ATTENDANCE  AS ARE NECESSARY FOR THE APPROPRIATE TREATMENT OF THE WOUND,
 INJURY, DISEASE OR DISABILITY MAY BE  PAID  FROM  THE  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE  ACCOUNT AS PROVIDED IN ARTICLE FOURTEEN OF
 THIS CHAPTER UNTIL TREATMENT IS PROVIDED BY THE FEDERAL VETERANS  ADMIN-
 ISTRATION,  OR THE INCAPACITY RESULTING FROM SUCH WOUND, INJURY, DISEASE
 OR DISABILITY CANNOT BE MATERIALLY IMPROVED BY FURTHER  CARE  OR  TREAT-
 MENT.  THE  DETERMINATION OF WHETHER SUCH INJURY OR DISEASE WAS INCURRED
 WHILE PERFORMING SUCH LAWFULLY ORDERED ACTIVE DUTY  IN  A  COMBAT  ZONE,
 DESIGNATED BY THE PRESIDENT OF THE UNITED STATES DURING OPERATION ENDUR-
 ING FREEDOM OR OPERATION IRAQI FREEDOM, SHALL BE IN ACCORDANCE WITH THIS
 SECTION AND SUCH REGULATIONS AS MAY BE PRESCRIBED BY THE ADJUTANT GENER-
 AL.
   2.  IF  CARE  FOR  SUCH  A  SERVICE MEMBER IS APPROVED BY THE ADJUTANT
 GENERAL AND THE SERVICE MEMBER SHALL HAVE  CREATED  A  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE ACCOUNT IN ACCORDANCE WITH ARTICLE FOURTEEN
 OF THIS CHAPTER, THE STATE SHALL MAKE A PAYMENT OF FIVE THOUSAND DOLLARS
 INTO SUCH SERVICE MEMBER'S COMBAT VETERANS  HEALTHCARE  CHOICE  ACCOUNT.
 SUCH PAYMENT SHALL NOT EXCEED FIVE THOUSAND DOLLARS IN ANY CALENDAR YEAR
 AND  SHALL  BE  DISCONTINUED UPON THE SERVICE MEMBER RECEIVING CARE FROM
 THE FEDERAL DEPARTMENT OF VETERANS AFFAIRS FOR THE INJURIES OR DISABILI-
 TIES SUSTAINED WHILE IN QUALIFIED STATE SERVICE.
   3. NONE OF THE BENEFITS PROVIDED BY SUBDIVISION ONE  OF  THIS  SECTION
 SHALL  BE  PAID OR ALLOWED UNLESS A CLAIM THEREFOR HAS BEEN PRESENTED TO
 THE ADJUTANT GENERAL WITHIN THREE YEARS AFTER THE DATE WHEN SUCH  WOUND,
 INJURY,  DISEASE OR DISABILITY WAS INCURRED, OR FROM THE DATE OF DISCOV-
 ERY OF SUCH WOUND, INJURY, DISEASE OR DISABILITY.  NONE OF THE  BENEFITS
 PROVIDED  BY SUBDIVISION ONE OF THIS SECTION SHALL BE PAID OR ALLOWED BY
 THE STATE FOR ANY PERIOD DURING WHICH SUCH MEMBER OF THE ORGANIZED MILI-
 TIA IS ENTITLED TO RECEIVE THE SAME AS A CHARGE AGAINST FEDERAL FUNDS.
   4. A. WHERE A CLAIM IS MADE UNDER THIS SECTION  THE  ADJUTANT  GENERAL
 WILL  MAKE A DETERMINATION AS TO WHETHER VALID APPLICATION OR ATTEMPT TO
 SCHEDULE AN APPOINTMENT TO FILE AN APPLICATION FOR CARE WAS MADE TO  THE
 FEDERAL  VETERANS  ADMINISTRATION  AND  WHETHER  NINETY  DAYS SHALL HAVE
 PASSED SINCE SUCH APPLICATION OR ATTEMPT WAS MADE. THE ADJUTANT  GENERAL
 MAY CAUSE EXAMINATIONS OF THE CLAIMANT TO BE MADE FROM TIME TO TIME BY A
 PHYSICIAN, SURGEON OR DENTIST DESIGNATED FOR THE PURPOSE BY THE ADJUTANT
 GENERAL,  AND HE OR SHE MAY DIRECT THE REMOVAL OF A CLAIMANT TO, AND HIS
 OR HER TREATMENT IN, A HOSPITAL DESIGNATED BY THE ADJUTANT GENERAL,  AND
 IF  THE  CLAIMANT REFUSES TO PERMIT ANY SUCH EXAMINATION OR IF HE OR SHE
 REFUSES TO GO TO SUCH HOSPITAL OR TO FOLLOW THE ADVICE GIVEN  OR  TREAT-
 MENT  PRESCRIBED FOR HIM OR HER THEREIN, HE OR SHE SHALL THEREBY FORFEIT
 AND BE BARRED FROM ALL RIGHT  TO  ANY  CLAIM  OR  ALLOWANCE  UNDER  THIS
 SECTION.
   B.  THE  ADJUTANT GENERAL MAY APPOINT A MEDICAL EXAMINER OR A BOARD OF
 THREE OFFICERS, AT LEAST ONE OF WHOM SHALL  BE  A  MEDICAL  OFFICER,  TO
 INQUIRE  INTO  THE MERITS OF ANY CLAIM PRESENTED UNDER THIS SECTION, AND
 TO RECOMMEND THE AMOUNT OR AMOUNTS, IF ANY, TO BE PAID OR ALLOWED  UNDER
 THIS  SECTION, OR HE OR SHE MAY, IN HIS OR HER DISCRETION, DETERMINE ANY
 CLAIM WITHOUT APPOINTING A MEDICAL EXAMINER OR BOARD AND FIX THE  AMOUNT

 S. 2096--C                          3
 
 TO  BE  PAID  OR  ALLOWED  UNDER  THIS SECTION. IF NO MEDICAL OFFICER IS
 AVAILABLE, SUCH MEDICAL EXAMINER OR MEDICAL OFFICER ON SUCH BOARD MAY BE
 A CIVILIAN PHYSICIAN, SURGEON OR DENTIST.
   C. A MEDICAL EXAMINER OR BOARD APPOINTED UNDER THIS SECTION SHALL HAVE
 THE  SAME  POWER TO TAKE EVIDENCE, ADMINISTER OATHS, ISSUE SUBPOENAS AND
 COMPEL WITNESSES TO ATTEND AND TESTIFY AND TO PRODUCE BOOKS AND  PAPERS,
 AND TO PUNISH THEIR FAILURE TO DO SO AS IS POSSESSED BY MILITARY COURTS.
   D.  THE  FINDINGS AND RECOMMENDATIONS OF THE MEDICAL EXAMINER OR BOARD
 SHALL  BE  SUBMITTED  TO  THE  ADJUTANT  GENERAL  WHO  MAY  RETURN   THE
 PROCEEDINGS  TO SUCH EXAMINER OR BOARD FOR RECONSIDERATION OR FOR TAKING
 FURTHER TESTIMONY AND WHO SHALL APPROVE OR DISAPPROVE THE CLAIM AND  FIX
 THE AMOUNT, IF ANY, TO BE PAID OR ALLOWED UNDER THIS SECTION. THE AMOUNT
 SO  FIXED  BY THE ADJUTANT GENERAL SHALL BE A CHARGE AGAINST AND BE PAID
 IN THE MANNER PROVIDED BY THIS SECTION, BY THE STATE.
   § 3. The military law is amended by adding a new article 14 to read as
 follows:
                                ARTICLE 14
         NEW YORK'S OWN COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 SECTION 400. PROGRAM ESTABLISHED.
         401. PURPOSE.
         402. DEFINITIONS.
         403. FUNCTIONS OF THE COMPTROLLER AND THE DIVISION.
         404. PROGRAM REQUIREMENTS; NEW YORK COMBAT  VETERANS  HEALTHCARE
                CHOICE ACCOUNT.
         405.  PROGRAM  LIMITATIONS;  NEW YORK COMBAT VETERANS HEALTHCARE
                CHOICE ACCOUNT.
   § 400. PROGRAM ESTABLISHED.  THERE IS HEREBY ESTABLISHED THE NEW  YORK
 COMBAT  VETERANS  HEALTHCARE  CHOICE  PROGRAM  AND SUCH PROGRAM SHALL BE
 KNOWN AND MAY BE CITED AS THE "NEW YORK'S OWN COMBAT VETERANS HEALTHCARE
 CHOICE PROGRAM".
   § 401. PURPOSE. THE PURPOSES OF THE NEW YORK COMBAT  VETERANS  HEALTH-
 CARE  CHOICE  PROGRAM  ARE  TO  AUTHORIZE  THE ESTABLISHMENT OF VETERANS
 HEALTHCARE CHOICE ACCOUNTS AND PROVIDE GUIDELINES FOR THE MAINTENANCE OF
 SUCH ACCOUNTS TO:
   1. ENABLE RESIDENT VETERAN MEMBERS OF THE ORGANIZED  MILITIA  OF  THIS
 STATE WHO WERE ON ACTIVE DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESI-
 DENT OF THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR OPERATION
 IRAQI  FREEDOM,  TO OBTAIN HEALTHCARE FROM THE PROVIDER OF THEIR CHOICE,
 WITH FUNDS FROM A NEW YORK COMBAT  VETERANS  HEALTHCARE  CHOICE  ACCOUNT
 FUNDED BY THE STATE AND THE SERVICE MEMBER IN ACCORDANCE WITH THIS ARTI-
 CLE,  WHEN  AFTER  NINETY DAYS OF MAKING APPLICATION TO OR ATTEMPTING TO
 SCHEDULE AN APPOINTMENT WITH THE  FEDERAL  VETERANS  ADMINISTRATION  FOR
 SUCH  CARE,  THE  SERVICE  MEMBER IS UNABLE TO SECURE TIMELY OR ADEQUATE
 HEALTHCARE SERVICES FOR INJURIES AND DISABILITIES SUSTAINED IN THE  LINE
 OF  ACTIVE DUTY IN SUCH A COMBAT ZONE, WHENEVER ORDERED INTO SUCH COMBAT
 ZONE FOR THREE HUNDRED SIXTY DAYS OR MORE BY THE GOVERNOR, THE  COMMAND-
 ING  GENERAL OF THE NEW YORK ARMY NATIONAL GUARD, THE COMMANDING OFFICER
 OF THE NEW YORK AIR NATIONAL GUARD OR  THE  COMMANDING  OFFICER  OF  THE
 NAVAL MILITIA;
   2. PROVIDE FUNDING FROM THE STATE FOR NEW YORK COMBAT VETERANS HEALTH-
 CARE  CHOICE  ACCOUNTS  IN  AN AMOUNT OF UP TO FIVE THOUSAND DOLLARS PER
 CALENDAR YEAR FOR A PERIOD NOT TO EXCEED THREE YEARS, WHEN IN ACCORDANCE
 WITH THIS ARTICLE, A QUALIFIED STATE RESIDENT COMBAT VETERAN  IS  UNABLE
 TO  SECURE  HEALTHCARE SERVICES WITHIN NINETY DAYS OF MAKING APPLICATION
 OR SCHEDULING AN APPOINTMENT  TO  MAKE  SUCH  AN  APPLICATION  FOR  SUCH
 SERVICES FROM THE FEDERAL VETERANS ADMINISTRATION; AND

 S. 2096--C                          4
 
   3.  TO  CREATE  A  STATE  PERSONAL  INCOME  TAX  DEDUCTION FOR AMOUNTS
 CONTRIBUTED BY QUALIFIED RESIDENT COMBAT VETERANS TO A NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT IN AN AMOUNT NOT TO EXCEED FIVE THOU-
 SAND DOLLARS PER CALENDAR YEAR AS PROVIDED IN THIS ARTICLE.
   § 402. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "ACCOUNT"  OR "NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT"
 SHALL MEAN AN INDIVIDUAL SAVINGS ACCOUNT ESTABLISHED IN ACCORDANCE  WITH
 THE PROVISIONS OF THIS ARTICLE.
   2.  "ACCOUNT  OWNER"  SHALL  MEAN  A PERSON WHO ENTERS INTO A NEW YORK
 COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT  AGREEMENT  PURSUANT  TO  THE
 PROVISIONS  OF  THIS ARTICLE, INCLUDING A PERSON WHO ENTERS INTO SUCH AN
 AGREEMENT AS A FIDUCIARY OR AGENT ON BEHALF OF A TRUST, ESTATE, PARTNER-
 SHIP, ASSOCIATION, COMPANY OR CORPORATION. THE ACCOUNT OWNER MAY ALSO BE
 THE DESIGNATED BENEFICIARY OF THE ACCOUNT.
   3. "DESIGNATED BENEFICIARY" SHALL MEAN, WITH RESPECT TO AN ACCOUNT  OR
 ACCOUNTS,  THE  INDIVIDUAL DESIGNATED AS THE INDIVIDUAL WHOSE HEALTHCARE
 EXPENSES ARE EXPECTED TO BE PAID FROM THE ACCOUNT OR ACCOUNTS.
   4. "FINANCIAL ORGANIZATION" SHALL MEAN AN ORGANIZATION  AUTHORIZED  TO
 DO  BUSINESS IN THE STATE OF NEW YORK AND (A) IS AN AUTHORIZED FIDUCIARY
 TO ACT AS A TRUSTEE PURSUANT TO THE PROVISIONS OF  AN  ACT  OF  CONGRESS
 ENTITLED  "EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT  OF 1974" AS SUCH
 PROVISIONS MAY BE AMENDED FROM TIME TO TIME, OR  AN  INSURANCE  COMPANY;
 AND  (B)(I)  IS  LICENSED  OR  CHARTERED  BY THE DEPARTMENT OF FINANCIAL
 SERVICES, (II) IS CHARTERED BY AN  AGENCY  OF  THE  FEDERAL  GOVERNMENT,
 (III)  IS  SUBJECT  TO THE JURISDICTION AND REGULATION OF THE SECURITIES
 AND EXCHANGE COMMISSION OF THE FEDERAL GOVERNMENT, OR (IV) IS ANY  OTHER
 ENTITY  OTHERWISE  AUTHORIZED  TO  ACT  IN  THIS STATE AS A TRUSTEE OF A
 HEALTH SAVINGS ACCOUNT PURSUANT TO THE PROVISIONS OF AN ACT OF  CONGRESS
 ENTITLED THE "MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION
 ACT", AS SUCH PROVISIONS MAY BE AMENDED FROM TIME TO TIME.
   5.  "ELIGIBLE  HEALTHCARE  INSTITUTION"  SHALL  MEAN  ANY  INSTITUTION
 LICENSED, CERTIFIED OR AUTHORIZED BY THE  STATE  TO  PROVIDE  HEALTHCARE
 SERVICES.
   6. "MEMBER OF FAMILY" SHALL MEAN A FAMILY MEMBER AS DEFINED IN SECTION
 529 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.
   7. "PROGRAM" SHALL MEAN THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
   8.  "QUALIFIED  HEALTHCARE  EXPENSES"  SHALL  MEAN ANY MEDICAL EXPENSE
 DEDUCTIBLE ON FEDERAL INCOME TAXES.
   9. "QUALIFIED STATE SERVICE" SHALL MEAN ACTIVE DUTY  SERVICE  RENDERED
 WHILE  BEING  ORDERED INTO A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF
 THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR  OPERATION  IRAQI
 FREEDOM,  FOR  THREE  HUNDRED  SIXTY  DAYS  OR MORE BY THE GOVERNOR, THE
 COMMANDING GENERAL OF THE NEW YORK ARMY NATIONAL GUARD,  THE  COMMANDING
 OFFICER  OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER OF
 THE NAVAL MILITIA.
   10. "QUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN ACCOUNT  TO
 PAY  THE QUALIFIED HEALTHCARE EXPENSES OF A SERVICE MEMBER OR DESIGNATED
 BENEFICIARY OF AN ACCOUNT AT AN ELIGIBLE HEALTHCARE INSTITUTION.
   11. "NONQUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN  ACCOUNT
 WHICH IS NOT:
   A. A QUALIFIED WITHDRAWAL; OR
   B.  A  WITHDRAWAL MADE AS THE RESULT OF THE DEATH OR DISABILITY OF THE
 DESIGNATED BENEFICIARY OF THE ACCOUNT.
   12. "DIVISION" SHALL MEAN THE DIVISION OF MILITARY AND NAVAL AFFAIRS.

 S. 2096--C                          5
 
   13. "COMPTROLLER" SHALL MEAN THE STATE COMPTROLLER.
   14.  "MANAGEMENT  CONTRACT"  SHALL  MEAN  THE CONTRACT EXECUTED BY THE
 COMPTROLLER AND A FINANCIAL ORGANIZATION SELECTED TO ACT AS A DEPOSITORY
 AND MANAGER OF THE PROGRAM.
   15. "NEW YORK COMBAT VETERANS  HEALTHCARE  CHOICE  ACCOUNT  AGREEMENT"
 SHALL MEAN AN AGREEMENT BETWEEN THE COMPTROLLER OR A FINANCIAL ORGANIZA-
 TION AND AN ACCOUNT OWNER.
   16.  "PROGRAM MANAGER" SHALL MEAN A FINANCIAL ORGANIZATION SELECTED BY
 THE COMPTROLLER TO ACT AS DEPOSITORY AND MANAGER OF THE PROGRAM.
   § 403. FUNCTIONS OF THE COMPTROLLER AND THE  DIVISION.  1.  THE  COMP-
 TROLLER AND THE DIVISION SHALL IMPLEMENT THE PROGRAM UNDER THE TERMS AND
 CONDITIONS ESTABLISHED BY THIS ARTICLE AND A MEMORANDUM OF UNDERSTANDING
 RELATING TO ANY TERMS OR CONDITIONS NOT OTHERWISE EXPRESSLY PROVIDED FOR
 IN THIS ARTICLE.
   2. IN FURTHERANCE OF SUCH IMPLEMENTATION THE MEMORANDUM OF UNDERSTAND-
 ING  SHALL  ADDRESS  THE AUTHORITY AND RESPONSIBILITY OF THE COMPTROLLER
 AND THE DIVISION TO:
   A. DEVELOP AND IMPLEMENT THE PROGRAM IN A MANNER CONSISTENT  WITH  THE
 PROVISIONS  OF THIS ARTICLE THROUGH RULES AND REGULATIONS ESTABLISHED IN
 ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT;
   B. ENGAGE THE SERVICES OF CONSULTANTS ON A CONTRACT BASIS FOR  RENDER-
 ING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
   C.  SEEK  RULINGS AND OTHER GUIDANCE FROM THE UNITED STATES DEPARTMENT
 OF TREASURY AND THE INTERNAL REVENUE SERVICE RELATING TO THE PROGRAM;
   D. MAKE CHANGES TO THE PROGRAM REQUIRED FOR THE  PARTICIPANTS  IN  THE
 PROGRAM  TO OBTAIN THE FEDERAL INCOME TAX BENEFITS OR TREATMENT PROVIDED
 FOR HEALTH SAVINGS ACCOUNTS;
   E. CHARGE, IMPOSE AND COLLECT ADMINISTRATIVE FEES AND SERVICE  CHARGES
 IN  CONNECTION  WITH  ANY AGREEMENT, CONTRACT OR TRANSACTION RELATING TO
 THE PROGRAM;
   F. DEVELOP MARKETING PLANS AND PROMOTION MATERIAL;
   G. ESTABLISH THE METHODS BY WHICH THE FUNDS HELD IN SUCH  ACCOUNTS  BE
 DISPERSED;
   H.  ESTABLISH  THE METHOD BY WHICH FUNDS SHALL BE ALLOCATED TO PAY FOR
 ADMINISTRATIVE COSTS; AND
   I. DO ALL THINGS NECESSARY AND PROPER TO CARRY  OUT  THE  PURPOSES  OF
 THIS ARTICLE.
   §  404.  PROGRAM  REQUIREMENTS;  NEW  YORK  COMBAT VETERANS HEALTHCARE
 CHOICE ACCOUNT. 1. NEW YORK COMBAT VETERANS HEALTHCARE  CHOICE  ACCOUNTS
 ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS ARTICLE SHALL BE GOVERNED
 BY THE PROVISIONS OF THIS SECTION.
   2.  A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT MAY BE OPENED
 BY ANY PERSON WHO DESIRES TO SAVE MONEY FOR THE PAYMENT OF THE QUALIFIED
 HEALTHCARE EXPENSES OF THE DESIGNATED BENEFICIARY. AN ACCOUNT OWNER  MAY
 DESIGNATE  ANOTHER  QUALIFIED  SERVICE  MEMBER AS SUCCESSOR OWNER OF THE
 ACCOUNT IN THE EVENT OF THE DEATH OF THE ORIGINAL  ACCOUNT  OWNER.  SUCH
 PERSON  WHO  OPENS AN ACCOUNT OR ANY SUCCESSOR OWNER SHALL BE CONSIDERED
 THE ACCOUNT OWNER.
   A. AN APPLICATION FOR SUCH ACCOUNT SHALL BE IN THE FORM PRESCRIBED  BY
 THE PROGRAM AND CONTAIN THE FOLLOWING:
   (I) THE NAME, ADDRESS AND SOCIAL SECURITY NUMBER OR EMPLOYER IDENTIFI-
 CATION NUMBER OF THE ACCOUNT OWNER;
   (II) THE DESIGNATION OF A DESIGNATED BENEFICIARY;
   (III)  THE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OF THE DESIGNATED
 BENEFICIARY; AND
   (IV) SUCH OTHER INFORMATION AS THE PROGRAM MAY REQUIRE.

 S. 2096--C                          6
 
   B. THE COMPTROLLER AND THE DIVISION MAY ESTABLISH A  NOMINAL  FEE  FOR
 SUCH APPLICATION.
   3.  ANY PERSON, INCLUDING THE ACCOUNT OWNER, MAY MAKE CONTRIBUTIONS TO
 THE ACCOUNT AFTER THE ACCOUNT IS OPENED.
   4. CONTRIBUTIONS TO ACCOUNTS MAY BE MADE ONLY IN CASH.
   5. AN ACCOUNT OWNER MAY MAKE A QUALIFIED WITHDRAWAL OF ALL OR PART  OF
 THE  BALANCE FROM AN ACCOUNT ON SIXTY DAYS NOTICE OR SUCH SHORTER PERIOD
 AS MAY BE AUTHORIZED UNDER RULES GOVERNING THE PROGRAM. SUCH RULES SHALL
 INCLUDE PROVISIONS THAT WILL GENERALLY ENABLE THE  DETERMINATION  AS  TO
 WHETHER  A  WITHDRAWAL IS A NONQUALIFIED WITHDRAWAL OR A QUALIFIED WITH-
 DRAWAL.
   6. AN ACCOUNT OWNER  MAY  CHANGE  THE  DESIGNATED  BENEFICIARY  OF  AN
 ACCOUNT  TO  A SERVICE MEMBER WHO IS A MEMBER OF THE FAMILY OF THE PRIOR
 DESIGNATED BENEFICIARY IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY  THE
 MEMORANDUM  OF  UNDERSTANDING PURSUANT TO THE PROVISIONS OF SECTION FOUR
 HUNDRED THREE OF THIS ARTICLE.
   7. THE PROGRAM SHALL PROVIDE SEPARATE ACCOUNTING FOR  EACH  DESIGNATED
 BENEFICIARY.
   8.  NO ACCOUNT OWNER OR DESIGNATED BENEFICIARY OF ANY ACCOUNT SHALL BE
 PERMITTED TO DIRECT THE INVESTMENT OF ANY CONTRIBUTIONS TO AN ACCOUNT OR
 THE EARNINGS THEREON MORE THAN TWO TIMES IN ANY CALENDAR YEAR.
   9. NEITHER AN ACCOUNT OWNER NOR A DESIGNATED BENEFICIARY  MAY  USE  AN
 INTEREST IN AN ACCOUNT AS SECURITY FOR A LOAN. ANY PLEDGE OF AN INTEREST
 IN AN ACCOUNT SHALL BE OF NO FORCE AND EFFECT.
   10.  THE  COMPTROLLER SHALL PROMULGATE RULES OR REGULATIONS TO PREVENT
 CONTRIBUTIONS ON BEHALF OF A DESIGNATED  BENEFICIARY  IN  EXCESS  OF  AN
 AMOUNT  THAT  WOULD CAUSE THE AGGREGATE ACCOUNT BALANCE FOR ALL ACCOUNTS
 FOR A DESIGNATED BENEFICIARY TO EXCEED A  MAXIMUM  ACCOUNT  BALANCE,  AS
 ESTABLISHED FROM TIME TO TIME BY THE COMPTROLLER AND THE DIVISION ON THE
 BASIS  OF  HEALTHCARE  COSTS  IN  THE STATE, WITH ADEQUATE SAFEGUARDS TO
 PREVENT MORE CONTRIBUTIONS THAN NECESSARY TO PROVIDE FOR  THE  QUALIFIED
 HEALTHCARE COSTS OF THE BENEFICIARY, AS REQUIRED TO MAINTAIN THE PROGRAM
 AS A "QUALIFIED HEALTH SAVINGS PROGRAM" PURSUANT TO FEDERAL LAW.
   11.  A. IF THERE IS ANY DISTRIBUTION FROM AN ACCOUNT TO ANY INDIVIDUAL
 OR FOR THE BENEFIT OF  ANY  INDIVIDUAL  DURING  A  CALENDAR  YEAR,  SUCH
 DISTRIBUTION  SHALL  BE REPORTED TO THE INTERNAL REVENUE SERVICE AND THE
 ACCOUNT OWNER, THE DESIGNATED BENEFICIARY, OR  THE  DISTRIBUTEE  TO  THE
 EXTENT REQUIRED BY FEDERAL LAW OR REGULATION.
   B.  STATEMENTS  SHALL  BE PROVIDED TO EACH ACCOUNT OWNER AT LEAST ONCE
 EACH YEAR WITHIN SIXTY DAYS AFTER THE END OF THE TWELVE MONTH PERIOD  TO
 WHICH  THEY  RELATE. THE STATEMENT SHALL IDENTIFY THE CONTRIBUTIONS MADE
 DURING A PRECEDING TWELVE MONTH PERIOD, THE TOTAL CONTRIBUTIONS MADE  TO
 THE  ACCOUNT  THROUGH THE END OF THE PERIOD, THE VALUE OF THE ACCOUNT AT
 THE END OF SUCH PERIOD, DISTRIBUTIONS MADE DURING SUCH  PERIOD  AND  ANY
 OTHER  INFORMATION  THAT THE COMPTROLLER SHALL REQUIRE TO BE REPORTED TO
 THE ACCOUNT OWNER.
   C. STATEMENTS AND INFORMATION RELATING TO ACCOUNTS SHALL  BE  PREPARED
 AND FILED TO THE EXTENT REQUIRED BY FEDERAL AND STATE TAX LAW.
   12.  A.  A  LOCAL  GOVERNMENT  OR  ORGANIZATION  DESCRIBED  IN SECTION
 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, MAY OPEN AND
 BECOME THE ACCOUNT OWNER OF AN  ACCOUNT  TO  FUND  QUALIFIED  HEALTHCARE
 EXPENSES  FOR  PERSONS  WHOSE IDENTITY WILL BE DETERMINED UPON DISBURSE-
 MENT.
   B. IN THE CASE OF ANY ACCOUNT OPENED PURSUANT TO PARAGRAPH A  OF  THIS
 SUBDIVISION THE REQUIREMENT SET FORTH IN SUBDIVISION TWO OF THIS SECTION
 THAT  A  DESIGNATED  BENEFICIARY BE DESIGNATED WHEN AN ACCOUNT IS OPENED

 S. 2096--C                          7
 
 SHALL NOT APPLY AND EACH INDIVIDUAL WHO RECEIVES  AN  INTEREST  IN  SUCH
 ACCOUNT  AS  A  QUALIFIED HEALTHCARE EXPENSE GRANT SHALL BE TREATED AS A
 DESIGNATED BENEFICIARY WITH RESPECT TO SUCH INTEREST.
   13.  AN ANNUAL FEE MAY BE IMPOSED UPON THE ACCOUNT OWNER FOR THE MAIN-
 TENANCE OF THE ACCOUNT.
   14. THE PROGRAM SHALL DISCLOSE THE FOLLOWING INFORMATION IN WRITING TO
 EACH ACCOUNT OWNER AND PROSPECTIVE ACCOUNT OWNER OF A  NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT:
   A.  THE TERMS AND CONDITIONS FOR PURCHASING A NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE ACCOUNT;
   B. ANY RESTRICTIONS ON THE SUBSTITUTION OF BENEFICIARIES;
   C. THE PERSON OR ENTITY ENTITLED TO  TERMINATE  THE  NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   D.  THE PERIOD OF TIME DURING WHICH A BENEFICIARY MAY RECEIVE BENEFITS
 UNDER THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   E. THE TERMS AND  CONDITIONS  UNDER  WHICH  MONEY  MAY  BE  WHOLLY  OR
 PARTIALLY WITHDRAWN FROM THE PROGRAM, INCLUDING, BUT NOT LIMITED TO, ANY
 REASONABLE CHARGES AND FEES THAT MAY BE IMPOSED FOR WITHDRAWAL;
   F.  THE PROBABLE TAX CONSEQUENCES ASSOCIATED WITH CONTRIBUTIONS TO AND
 DISTRIBUTIONS FROM ACCOUNTS; AND
   G. ALL OTHER RIGHTS AND OBLIGATIONS PURSUANT TO NEW YORK COMBAT VETER-
 ANS HEALTHCARE CHOICE ACCOUNT AGREEMENTS, AND ANY  OTHER  TERMS,  CONDI-
 TIONS,  AND  PROVISIONS DEEMED NECESSARY AND APPROPRIATE BY THE TERMS OF
 THE MEMORANDUM OF UNDERSTANDING ENTERED INTO PURSUANT  TO  SECTION  FOUR
 HUNDRED THREE OF THIS ARTICLE.
   15.  NEW  YORK  COMBAT  VETERANS  HEALTHCARE CHOICE ACCOUNT AGREEMENTS
 SHALL BE SUBJECT TO SECTION  FOURTEEN-C  OF  THE  BANKING  LAW  AND  THE
 "TRUTH-IN-SAVINGS" REGULATIONS PROMULGATED THEREUNDER.
   16. NOTHING IN THIS ARTICLE OR IN ANY NEW YORK COMBAT VETERANS HEALTH-
 CARE  CHOICE  ACCOUNT  AGREEMENT  ENTERED  INTO PURSUANT TO THIS ARTICLE
 SHALL BE CONSTRUED AS A GUARANTEE BY THE STATE OR ANY HEALTHCARE PROVID-
 ER THAT A BENEFICIARY WILL BE ADMITTED TO AN ELIGIBLE HEALTHCARE  INSTI-
 TUTION, OR, UPON ADMISSION TO AN ELIGIBLE HEALTHCARE INSTITUTION WILL BE
 PERMITTED TO REMAIN IN SUCH ELIGIBLE HEALTHCARE INSTITUTION.
   § 405. PROGRAM LIMITATIONS; NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT. 1. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO:
   A.  GIVE  ANY DESIGNATED BENEFICIARY ANY RIGHTS OR LEGAL INTEREST WITH
 RESPECT TO AN ACCOUNT UNLESS THE DESIGNATED BENEFICIARY IS  THE  ACCOUNT
 OWNER;
   B.  GUARANTEE  THAT  A  DESIGNATED  BENEFICIARY WILL BE ADMITTED TO AN
 ELIGIBLE HEALTHCARE INSTITUTION;
   C. CREATE STATE RESIDENCY FOR AN INDIVIDUAL MERELY BECAUSE  THE  INDI-
 VIDUAL IS A DESIGNATED BENEFICIARY; OR
   D. GUARANTEE THAT AMOUNTS SAVED PURSUANT TO THE PROGRAM WILL BE SUFFI-
 CIENT TO COVER THE QUALIFIED HEALTHCARE EXPENSES OF A DESIGNATED BENEFI-
 CIARY.
   2.  A.  NOTHING IN THIS ARTICLE SHALL CREATE OR BE CONSTRUED TO CREATE
 ANY OBLIGATION OF THE COMPTROLLER, THE STATE, OR ANY AGENCY  OR  INSTRU-
 MENTALITY OF THE STATE TO GUARANTEE FOR THE BENEFIT OF ANY ACCOUNT OWNER
 OR DESIGNATED BENEFICIARY WITH RESPECT TO:
   (I) THE RATE OF INTEREST OR OTHER RETURN ON ANY ACCOUNT; AND
   (II) THE PAYMENT OF INTEREST OR OTHER RETURN ON ANY ACCOUNT.
   B.  THE  COMPTROLLER  AND  THE  DIVISION  BY  RULE OR REGULATION SHALL
 PROVIDE THAT EVERY CONTRACT, APPLICATION, DEPOSIT SLIP, OR OTHER SIMILAR
 DOCUMENT THAT MAY BE USED  IN  CONNECTION  WITH  A  CONTRIBUTION  TO  AN
 ACCOUNT  CLEARLY  INDICATE  THAT THE ACCOUNT IS NOT INSURED BY THE STATE

 S. 2096--C                          8
 
 AND NEITHER THE PRINCIPAL DEPOSITED NOR THE INVESTMENT RETURN IS GUARAN-
 TEED BY THE STATE.
   §  4.  The  state finance law is amended by adding a new section 82 to
 read as follows:
   § 82. NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM  TRUST  FUND.
 1.  THERE  IS  HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE STATE COMP-
 TROLLER A SPECIAL FUND TO BE KNOWN  AS  THE  NEW  YORK  COMBAT  VETERANS
 HEALTHCARE  CHOICE PROGRAM TRUST FUND. ALL PAYMENTS FROM SUCH FUND SHALL
 BE MADE IN ACCORDANCE WITH ARTICLE FOURTEEN OF THE MILITARY LAW AND  THE
 MEMORANDUM  OF  UNDERSTANDING ENTERED INTO PURSUANT THERETO ON THE AUDIT
 OF THE STATE COMPTROLLER.
   2. THE FUND SHALL BE A TRUST FUND AND SHALL CONSIST OF A TRUST ACCOUNT
 AND AN OPERATING  ACCOUNT.  THE  TRUST  ACCOUNT  SHALL  INCLUDE  AMOUNTS
 RECEIVED  BY  THE  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE PROGRAM
 PURSUANT TO NEW YORK COMBAT VETERANS HEALTHCARE  CHOICE  ACCOUNT  AGREE-
 MENTS,  ADMINISTRATIVE  CHARGES, FEES, AND ALL OTHER AMOUNTS RECEIVED BY
 THE PROGRAM FROM OTHER  SOURCES,  AND  INTEREST  AND  INVESTMENT  INCOME
 EARNED BY THE TRUST FUND. THE COMPTROLLER SHALL, FROM TIME TO TIME, MAKE
 TRANSFERS  FROM THE TRUST ACCOUNT TO THE OPERATING ACCOUNT FOR THE IMME-
 DIATE PAYMENT OF OBLIGATIONS UNDER NEW YORK COMBAT  VETERANS  HEALTHCARE
 CHOICE  ACCOUNT  AGREEMENTS, OPERATING EXPENSES AND ADMINISTRATIVE COSTS
 OF THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT.  ADMINISTRA-
 TIVE  COSTS  SHALL BE PAID OUT OF THE OPERATING ACCOUNT ACCORDING TO THE
 TERMS AND CONDITIONS ESTABLISHED PURSUANT TO THE PROVISIONS  OF  SECTION
 FOUR HUNDRED THREE OF THE MILITARY LAW.
   3.  (A)  THE  COMPTROLLER,  AS TRUSTEE, SHALL INVEST THE ASSETS OF THE
 TRUST FUND IN INVESTMENTS AUTHORIZED BY ARTICLE FOUR-A OF THE RETIREMENT
 AND SOCIAL SECURITY LAW, PROVIDED HOWEVER, THAT:
   (I) THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION  ONE
 HUNDRED  SEVENTY-SEVEN  OF  THE RETIREMENT AND SOCIAL SECURITY LAW SHALL
 NOT APPLY EXCEPT FOR THE FIRST CLAUSE OF SUBPARAGRAPH (II) OF SUCH PARA-
 GRAPH; AND
   (II) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION  SEVEN  OF  SECTION
 ONE  HUNDRED  SEVENTY-SEVEN OF THE RETIREMENT AND SOCIAL SECURITY LAW OR
 ANY OTHER LAW TO THE CONTRARY, THE ASSETS  OF  THE  TRUST  FUND  MAY  BE
 INVESTED  IN  ANY  FUNDING  AGREEMENT  ISSUED IN ACCORDANCE WITH SECTION
 THREE THOUSAND TWO HUNDRED TWENTY-TWO OF THE INSURANCE LAW BY A DOMESTIC
 LIFE INSURANCE COMPANY OR A FOREIGN LIFE INSURANCE COMPANY  DOING  BUSI-
 NESS IN THIS STATE, SUBJECT TO THE FOLLOWING:
   (1) SUCH A FUNDING AGREEMENT MAY PROVIDE FOR A GUARANTEED MINIMUM RATE
 OF RETURN;
   (2)  SUCH  A  FUNDING  AGREEMENT MAY BE ALLOCATED AS EITHER A SEPARATE
 ACCOUNT OR A GENERAL ACCOUNT OF  THE  ISSUER,  AS  THE  COMPTROLLER  MAY
 DECIDE;
   (3)  TOTAL INVESTMENTS OF THE TRUST FUND PURSUANT TO THIS PARAGRAPH IN
 ANY FUNDING AGREEMENTS ISSUED BY A SINGLE LIFE INSURANCE  COMPANY  WHICH
 ARE  ALLOCATED  AS  A  GENERAL  ACCOUNT  OF THE ISSUER SHALL NOT, IN THE
 AGGREGATE, EXCEED THREE HUNDRED FIFTY MILLION DOLLARS; AND
   (4) NO ASSETS OF THE TRUST FUND SHALL BE INVESTED IN ANY SUCH  FUNDING
 AGREEMENT  UNLESS,  AT  THE  TIME  OF SUCH INVESTMENT, THE GENERAL OBLI-
 GATIONS OR FINANCIAL STRENGTH OF THE ISSUER  HAVE  RECEIVED  EITHER  THE
 HIGHEST  OR  SECOND  HIGHEST  RATING BY TWO NATIONALLY RECOGNIZED RATING
 SERVICES OR BY ONE NATIONALLY RECOGNIZED RATING  SERVICE  IN  THE  EVENT
 THAT ONLY ONE SUCH SERVICE RATES SUCH OBLIGATIONS.
   (B)  TRUST FUND ASSETS SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMIN-
 GLED WITH OTHER ASSETS, EXCEPT AS PROVIDED IN THIS  SECTION.  THE  COMP-

 S. 2096--C                          9
 
 TROLLER  MAY  ENTER  INTO CONTRACTS TO PROVIDE FOR INVESTMENT ADVICE AND
 MANAGEMENT, CUSTODIAL SERVICES, AND OTHER PROFESSIONAL SERVICES FOR  THE
 ADMINISTRATION AND INVESTMENT OF THE PROGRAM. ADMINISTRATIVE FEES, COSTS
 AND EXPENSES, INCLUDING INVESTMENT FEES AND EXPENSES, SHALL BE PAID FROM
 THE ASSETS OF THE FUND.
   4.  THE  COMPTROLLER SHALL PROVIDE FOR THE ADMINISTRATION OF THE TRUST
 FUND,  INCLUDING  MAINTAINING  PARTICIPANT  RECORDS  AND  ACCOUNTS,  AND
 PROVIDING  ANNUAL  AUDITED  REPORTS.  THE  COMPTROLLER  MAY  ENTER  INTO
 CONTRACTS TO PROVIDE ADMINISTRATIVE SERVICES AND REPORTING.
   § 5. Section 5205 of the civil practice law and rules  is  amended  by
 adding a new subdivision (p) to read as follows:
   (P)  EXEMPTION  FOR NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 TRUST FUND PAYMENT MONIES. MONIES IN  AN  ACCOUNT  CREATED  PURSUANT  TO
 ARTICLE  FOURTEEN OF THE MILITARY LAW ARE EXEMPT FROM APPLICATION TO THE
 SATISFACTION OF A MONEY JUDGMENT.
   § 6. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 42 to read as follows:
   (42) DISTRIBUTIONS RECEIVED DURING THE TAXABLE YEAR BY A  DISTRIBUTION
 OF  A  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE ACCOUNT ESTABLISHED
 PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW,  TO  THE  EXTENT  SUCH
 DISTRIBUTIONS ARE NOT QUALIFIED WITHDRAWALS WITHIN THE MEANING OF SUBDI-
 VISION TEN OF SECTION FOUR HUNDRED TWO OF THE MILITARY LAW.
   § 7. Subsection (c) of section 612 of the tax law is amended by adding
 two new paragraphs 42 and 43 to read as follows:
   (42) CONTRIBUTIONS MADE DURING THE TAXABLE YEAR BY AN ACCOUNT OWNER TO
 ONE  OR  MORE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNTS ESTAB-
 LISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO  THE  EXTENT
 NOT  DEDUCTIBLE  OR ELIGIBLE FOR CREDIT FOR FEDERAL INCOME TAX PURPOSES,
 PROVIDED, HOWEVER, THE EXCLUSION PROVIDED FOR IN  THIS  PARAGRAPH  SHALL
 NOT EXCEED FIVE THOUSAND DOLLARS FOR AN INDIVIDUAL OR HEAD OF HOUSEHOLD,
 AND FOR MARRIED COUPLES WHO FILE JOINT TAX RETURNS, SHALL NOT EXCEED TEN
 THOUSAND DOLLARS; PROVIDED, FURTHER, THAT SUCH EXCLUSION SHALL BE AVAIL-
 ABLE ONLY TO THE ACCOUNT OWNER AND NOT TO ANY OTHER PERSON.
   (43)  DISTRIBUTIONS  FROM A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT ESTABLISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO
 THE EXTENT INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES.
   § 8. Subsection (d) of section 658 of the tax law is amended by adding
 a new paragraph 4 to read as follows:
   (4) THE COMMISSIONER MAY BY  REGULATION  OR  INSTRUCTION  REQUIRE  THE
 FILING OF A REPORT ANNUALLY BY THE COMPTROLLER OR PROGRAM MANAGER OF THE
 NEW   YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM, OR THEIR DESIGNEE,
 SETTING FORTH THE NAMES AND IDENTIFICATION NUMBERS  OF  ACCOUNT  OWNERS,
 DESIGNATED  BENEFICIARIES  AND  DISTRIBUTEES OF NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE PROGRAM ACCOUNTS,  THE  AMOUNTS  CONTRIBUTED  TO  SUCH
 ACCOUNTS,  THE  AMOUNTS DISTRIBUTED FROM SUCH ACCOUNTS AND THE NATURE OF
 SUCH DISTRIBUTIONS AS QUALIFIED WITHDRAWALS OR AS WITHDRAWALS OTHER THAN
 QUALIFIED WITHDRAWALS, AND ANY SUCH OTHER INFORMATION AS THE COMMISSION-
 ER MAY REQUIRE REGARDING THE TAXATION  UNDER  THIS  ARTICLE  OF  AMOUNTS
 CONTRIBUTED  TO  OR  WITHDRAWN  FROM SUCH ACCOUNTS. THE COMMISSIONER MAY
 REQUIRE THAT ANY SUCH REPORT ALSO BE MADE TO THE ACCOUNT  OWNER,  DESIG-
 NATED BENEFICIARY OR DISTRIBUTEE OF ANY SUCH ACCOUNT.
   §  9.  Section  190  of  the  executive law is amended by adding a new
 subdivision 5 to read as follows:
   5. THE DIVISION OF MILITARY AND  NAVAL  AFFAIRS  SHALL  ESTABLISH  AND
 MAINTAIN  A  VOLUNTARY  REGISTRY  OF  STATE  RESIDENTS WHO ARE HONORABLY
 DISCHARGED VETERANS OF THE ARMED FORCES OF THE UNITED  STATES,  AND  WHO

 S. 2096--C                         10
 
 SERVED  ON  REGULAR ACTIVE DUTY (OTHER THAN FOR TRAINING) DURING PART OF
 ONE OF THE FOLLOWING PERIODS:
   (A)  FROM  SEPTEMBER EIGHTEENTH, TWO THOUSAND ONE UNTIL THE END OF THE
 UNITED STATES MILITARY EFFORTS IN AFGHANISTAN; OR
   (B) FROM OCTOBER SIXTEENTH, TWO THOUSAND TWO  UNTIL  THE  END  OF  THE
 UNITED STATES MILITARY EFFORTS IN IRAQ.
   THE INFORMATION IN SUCH REGISTRY SHALL BE DEEMED CONFIDENTIAL, AND MAY
 ONLY  BE  ACCESSED  BY  SUCH VETERAN FOR PURPOSES OF PROOF OF HIS OR HER
 MILITARY SERVICE.
   § 10. This act shall take effect immediately and shall apply to  taxa-
 ble years beginning after December 31, 2017.

co-Sponsors

View additional co-sponsors

2017-S2096D (ACTIVE) - Details

Current Committee:: Senate Veterans, Homeland Security And Military Affairs
Law Section:: Military Law
Laws Affected:: Add §216-a, Art 14 §§400 - 405, Mil L; add §82, St Fin L; amd §5205, CPLR; amd §§612 & 658, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S8148

2017-S2096D (ACTIVE) - Summary

Establishes the "New York's Own combat veterans healthcare choice program act" to establish tax free savings accounts to pay the healthcare costs of combat veterans on active duty during Operation Enduring Freedom or Operation Iraqi Freedom, until covered by the federal government; and directs the division of military and naval affairs to establish a registry of Afghanistan and Iraq veterans.

2017-S2096D (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2096D

SPONSOR: MURPHY
 
TITLE OF BILL:  An act to amend the military law, the state finance
law, the civil practice law and rules, the tax law and the executive
law, in relation to establishing the "New York's Own combat veterans
healthcare choice program act"

 
PURPOSE:

This bill would authorize the creation of healthcare savings accounts
for New York resident combat veterans of the organized militia of the
State, who while on State Orders in a combat zone during the period
September 2011 to date, suffered injuries or disability, and who, upon
90 days of making application to the US Veterans Administration for
healthcare services related to those injuries or disability, have still
not received primary care or an appointment for primary care, for those
injuries or disability.

 
SUMMARY OF PROVISIONS:

The health care savings accounts will be funded: 1) for a period of up
to three years by New York State in the amount of $5,000 per year; and,
2) by State tax deductible contributions from the combat veteran not to
exceed $5,000 per year. The State's contributions to the soldier's
health care savings accounts will terminate upon the earlier of: a) the
combat veteran securing services from the VA for the injuries or disa-
bility sustained in a combat zone; or, b) three years after establish-
ment of the account.

All "Qualified Expenditures" from the account for healthcare would like-
wise be New York State tax deductible and would specifically include
drug and alcohol rehabilitation as well as PTSD. The combat veteran has
complete authority to choose the healthcare provider so long as they are
licensed by New York State. Much like the College Savers program, the
accounts would be administered by the State Comptroller and unexpended
funds would earn interest while on account

 
JUSTIFICATION:

The healthcare savings account program is patterned on the very success-
ful "New York 529 College Savers" program and will provide New York
resident members of the organized militia who deployed with a New York
unit to a combat zone, a bridge to much needed healthcare when, through
no fault of the service member, they have been unable to secure primary
care, or an appointment with a US Veterans Administration primary care
physician on a timely basis.

The recently released report of the General Accounting Office noted that
the Veterans Choice Program created by Congress in 2014 has failed to
reduce the number of veterans waiting more than 30 days to get an
appointment for primary care at either a VA facility or with one of the
Veterans Choice providers as the law requires. In fact, according to the
GAO report there are 71,000 more veterans waiting more than the 30 days
than there was in May of 2015.

Among the hundreds of thousands of veterans waiting longer than 30 days
are hundreds of New York resident Air and Army National Guard combat
veterans who sustained injuries or disabilities in a combat zone on
orders from The Governor and Adjutant General; and who, despite efforts
to secure primary care from the US Veterans Administration, have been
unable to schedule appointments. This program will ensure they have
healthcare until picked up by the Veterans Administration.

The Governor and Adjutant General have issued over 14,300 Orders to
members of the Organized Militia of New York to serve in certified
combat zones since September 11, 2001. An undetermined number of these
orders were issued to service members who had previously deployed to a
combat zone.

While the Division of Military and Naval Affairs does not certify disa-
bility ratings nor does it have any mechanism for tracking the applica-
tions of personnel returning from a combat zone who have made applica-
tion to US Veterans Administration for healthcare services, this bill
would create a mechanism for New York State to take of its own combat
veterans for injuries or disability suffered while on State Orders in a
Combat Zone if the US Veterans Administration has failed to provide the
service member with an appointment with a primary care physician within
90 days of requesting one.

 
LEGISLATIVE HISTORY:

2017-2018: S.2096
2016: S.8148

 
FISCAL IMPLICATIONS:

It is not possible to determine the total annual cost of this bill since
the number of effected New York resident combat veterans who would qual-
ify cannot be estimated. However, the total number of combat deployments
is 14,353 and among this universe is a number of service members with
multiple deployments and still others who are not residents of New York
State. Available records indicate that the percentage of all civilian
veterans with a VA disability is just 16,6% and the number of combat
veterans applying for VA disability has ranged from 8 % for Operation
Enduring Freedom to a high of 30 % for Operation Iraqi Freedom. Since it
is likely that a number of New York's combat injured or disabled
soldiers and airmen have succeeded in securing appointments with a VA
primary care physicians, the number qualified applicants is projected to
be not more than 1,500.

Thus, the maximum fiscal impact would not exceed $7,500,000 per year
over the first three years. Since the benefit terminates after the
earlier of three years; or the VA's assumption of responsibility for
primary care, it is highly unlikely that fiscal impact will ever reach
this sum.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning after December 31, 2018.

2017-S2096D (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2096--D
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sens.  MURPHY,  CROCI, LARKIN, ORTT, CARLUCCI, GALLIVAN,
   GOLDEN, MARCHIONE, O'MARA, RANZENHOFER, SERINO, SEWARD --  read  twice
   and ordered printed, and when printed to be committed to the Committee
   on Veterans, Homeland Security and Military Affairs -- reported favor-
   ably  from said committee and committed to the Committee on Finance --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said committee -- committee discharged, bill amended,
   ordered reprinted as amended and  recommitted  to  said  committee  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee  --  recommitted  to  the  Committee  on
   Veterans,  Homeland  Security  and Military Affairs in accordance with
   Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the military law, the state finance law, the civil prac-
   tice  law and rules, the tax law and the executive law, in relation to
   establishing the "New York's Own  combat  veterans  healthcare  choice
   program act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York's Own combat veterans healthcare choice program act".
   § 2. The military law is amended by adding a new section 216-a to read
 as follows:
   § 216-A. MEDICAL CARE WHEN INJURED OR DISABLED IN COMBAT ZONE.  1. ANY
 NEW  YORK  RESIDENT  MEMBER  OF THE ORGANIZED MILITIA WHO SHALL, WHEN ON
 ACTIVE DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF THE  UNITED
 STATES DURING OPERATION ENDURING FREEDOM OR OPERATION IRAQI FREEDOM, FOR
 THREE  HUNDRED  SIXTY DAYS OR MORE ON ORDERS ISSUED BY THE GOVERNOR, THE
 COMMANDING GENERAL OF THE NEW YORK ARMY NATIONAL GUARD,  THE  COMMANDING
 OFFICER  OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER OF
 THE NAVAL MILITIA, RECEIVE ANY WOUND OR INJURY, OR INCUR OR CONTRACT ANY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02315-10-8

 S. 2096--D                          2
 
 DISABILITY OR DISEASE, BY REASON OF SUCH  DUTY,  OR  WHO  SHALL  WITHOUT
 FAULT  OR  NEGLECT  ON  HIS  OR  HER  PART  BE WOUNDED OR DISABLED WHILE
 PERFORMING ANY LAWFULLY ORDERED DUTY WHILE IN SUCH A COMBAT ZONE,  WHICH
 SHALL  INCAPACITATE  HIM  OR HER, AND WHO IS UNABLE TO RECEIVE TIMELY OR
 ADEQUATE HEALTHCARE SERVICES FROM THE  FEDERAL  DEPARTMENT  OF  VETERANS
 AFFAIRS WITHIN NINETY DAYS OF MAKING APPLICATION FOR SUCH SERVICES SHALL
 RECEIVE  THE PAYMENT INTO SUCH SERVICE MEMBER'S NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE ACCOUNT ESTABLISHED PURSUANT TO  ARTICLE  FOURTEEN  OF
 THIS  CHAPTER  FOR  CARE  AND MEDICAL TREATMENT IF AUTHORITY THEREFOR IS
 GRANTED BY THE ADJUTANT GENERAL, EXPENSES FOR SUCH    CARE  AND  MEDICAL
 ATTENDANCE  AS ARE NECESSARY FOR THE APPROPRIATE TREATMENT OF THE WOUND,
 INJURY, DISEASE OR DISABILITY MAY BE  PAID  FROM  THE  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE  ACCOUNT AS PROVIDED IN ARTICLE FOURTEEN OF
 THIS CHAPTER UNTIL TREATMENT IS PROVIDED BY THE FEDERAL VETERANS  ADMIN-
 ISTRATION,  OR THE INCAPACITY RESULTING FROM SUCH WOUND, INJURY, DISEASE
 OR DISABILITY CANNOT BE MATERIALLY IMPROVED BY FURTHER  CARE  OR  TREAT-
 MENT.  THE  DETERMINATION OF WHETHER SUCH INJURY OR DISEASE WAS INCURRED
 WHILE PERFORMING SUCH LAWFULLY ORDERED ACTIVE DUTY  IN  A  COMBAT  ZONE,
 DESIGNATED BY THE PRESIDENT OF THE UNITED STATES DURING OPERATION ENDUR-
 ING FREEDOM OR OPERATION IRAQI FREEDOM, SHALL BE IN ACCORDANCE WITH THIS
 SECTION AND SUCH REGULATIONS AS MAY BE PRESCRIBED BY THE ADJUTANT GENER-
 AL.
   2.  IF  CARE  FOR  SUCH  A  SERVICE MEMBER IS APPROVED BY THE ADJUTANT
 GENERAL AND THE SERVICE MEMBER SHALL HAVE  CREATED  A  NEW  YORK  COMBAT
 VETERANS  HEALTHCARE  CHOICE ACCOUNT IN ACCORDANCE WITH ARTICLE FOURTEEN
 OF THIS CHAPTER, THE STATE SHALL MAKE A PAYMENT OF FIVE THOUSAND DOLLARS
 INTO SUCH SERVICE MEMBER'S COMBAT VETERANS  HEALTHCARE  CHOICE  ACCOUNT.
 SUCH PAYMENT SHALL NOT EXCEED FIVE THOUSAND DOLLARS IN ANY CALENDAR YEAR
 AND  SHALL  BE  DISCONTINUED UPON THE SERVICE MEMBER RECEIVING CARE FROM
 THE FEDERAL DEPARTMENT OF VETERANS AFFAIRS FOR THE INJURIES OR DISABILI-
 TIES SUSTAINED WHILE IN QUALIFIED STATE SERVICE.
   3. NONE OF THE BENEFITS PROVIDED BY SUBDIVISION ONE  OF  THIS  SECTION
 SHALL  BE  PAID OR ALLOWED UNLESS A CLAIM THEREFOR HAS BEEN PRESENTED TO
 THE ADJUTANT GENERAL WITHIN THREE YEARS AFTER THE DATE WHEN SUCH  WOUND,
 INJURY,  DISEASE OR DISABILITY WAS INCURRED, OR FROM THE DATE OF DISCOV-
 ERY OF SUCH WOUND, INJURY, DISEASE OR DISABILITY.  NONE OF THE  BENEFITS
 PROVIDED  BY SUBDIVISION ONE OF THIS SECTION SHALL BE PAID OR ALLOWED BY
 THE STATE FOR ANY PERIOD DURING WHICH SUCH MEMBER OF THE ORGANIZED MILI-
 TIA IS ENTITLED TO RECEIVE THE SAME AS A CHARGE AGAINST FEDERAL FUNDS.
   4. A. WHERE A CLAIM IS MADE UNDER THIS SECTION  THE  ADJUTANT  GENERAL
 WILL  MAKE A DETERMINATION AS TO WHETHER VALID APPLICATION OR ATTEMPT TO
 SCHEDULE AN APPOINTMENT TO FILE AN APPLICATION FOR CARE WAS MADE TO  THE
 FEDERAL  VETERANS  ADMINISTRATION  AND  WHETHER  NINETY  DAYS SHALL HAVE
 PASSED SINCE SUCH APPLICATION OR ATTEMPT WAS MADE. THE ADJUTANT  GENERAL
 MAY CAUSE EXAMINATIONS OF THE CLAIMANT TO BE MADE FROM TIME TO TIME BY A
 PHYSICIAN, SURGEON OR DENTIST DESIGNATED FOR THE PURPOSE BY THE ADJUTANT
 GENERAL,  AND HE OR SHE MAY DIRECT THE REMOVAL OF A CLAIMANT TO, AND HIS
 OR HER TREATMENT IN, A HOSPITAL DESIGNATED BY THE ADJUTANT GENERAL,  AND
 IF  THE  CLAIMANT REFUSES TO PERMIT ANY SUCH EXAMINATION OR IF HE OR SHE
 REFUSES TO GO TO SUCH HOSPITAL OR TO FOLLOW THE ADVICE GIVEN  OR  TREAT-
 MENT  PRESCRIBED FOR HIM OR HER THEREIN, HE OR SHE SHALL THEREBY FORFEIT
 AND BE BARRED FROM ALL RIGHT  TO  ANY  CLAIM  OR  ALLOWANCE  UNDER  THIS
 SECTION.
   B.  THE  ADJUTANT GENERAL MAY APPOINT A MEDICAL EXAMINER OR A BOARD OF
 THREE OFFICERS, AT LEAST ONE OF WHOM SHALL  BE  A  MEDICAL  OFFICER,  TO
 INQUIRE  INTO  THE MERITS OF ANY CLAIM PRESENTED UNDER THIS SECTION, AND

 S. 2096--D                          3

 TO RECOMMEND THE AMOUNT OR AMOUNTS, IF ANY, TO BE PAID OR ALLOWED  UNDER
 THIS  SECTION, OR HE OR SHE MAY, IN HIS OR HER DISCRETION, DETERMINE ANY
 CLAIM WITHOUT APPOINTING A MEDICAL EXAMINER OR BOARD AND FIX THE  AMOUNT
 TO  BE  PAID  OR  ALLOWED  UNDER  THIS SECTION. IF NO MEDICAL OFFICER IS
 AVAILABLE, SUCH MEDICAL EXAMINER OR MEDICAL OFFICER ON SUCH BOARD MAY BE
 A CIVILIAN PHYSICIAN, SURGEON OR DENTIST.
   C. A MEDICAL EXAMINER OR BOARD APPOINTED UNDER THIS SECTION SHALL HAVE
 THE SAME POWER TO TAKE EVIDENCE, ADMINISTER OATHS, ISSUE  SUBPOENAS  AND
 COMPEL  WITNESSES TO ATTEND AND TESTIFY AND TO PRODUCE BOOKS AND PAPERS,
 AND TO PUNISH THEIR FAILURE TO DO SO AS IS POSSESSED BY MILITARY COURTS.
   D. THE FINDINGS AND RECOMMENDATIONS OF THE MEDICAL EXAMINER  OR  BOARD
 SHALL   BE  SUBMITTED  TO  THE  ADJUTANT  GENERAL  WHO  MAY  RETURN  THE
 PROCEEDINGS TO SUCH EXAMINER OR BOARD FOR RECONSIDERATION OR FOR  TAKING
 FURTHER  TESTIMONY AND WHO SHALL APPROVE OR DISAPPROVE THE CLAIM AND FIX
 THE AMOUNT, IF ANY, TO BE PAID OR ALLOWED UNDER THIS SECTION. THE AMOUNT
 SO FIXED BY THE ADJUTANT GENERAL SHALL BE A CHARGE AGAINST AND  BE  PAID
 IN THE MANNER PROVIDED BY THIS SECTION, BY THE STATE.
   § 3. The military law is amended by adding a new article 14 to read as
 follows:
                                ARTICLE 14
         NEW YORK'S OWN COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 SECTION 400. PROGRAM ESTABLISHED.
         401. PURPOSE.
         402. DEFINITIONS.
         403. FUNCTIONS OF THE COMPTROLLER AND THE DIVISION.
         404. PROGRAM  REQUIREMENTS;  NEW YORK COMBAT VETERANS HEALTHCARE
                CHOICE ACCOUNT.
         405. PROGRAM LIMITATIONS; NEW YORK  COMBAT  VETERANS  HEALTHCARE
                CHOICE ACCOUNT.
   §  400. PROGRAM ESTABLISHED.  THERE IS HEREBY ESTABLISHED THE NEW YORK
 COMBAT VETERANS HEALTHCARE CHOICE PROGRAM  AND  SUCH  PROGRAM  SHALL  BE
 KNOWN AND MAY BE CITED AS THE "NEW YORK'S OWN COMBAT VETERANS HEALTHCARE
 CHOICE PROGRAM".
   §  401.  PURPOSE. THE PURPOSES OF THE NEW YORK COMBAT VETERANS HEALTH-
 CARE CHOICE PROGRAM ARE  TO  AUTHORIZE  THE  ESTABLISHMENT  OF  VETERANS
 HEALTHCARE CHOICE ACCOUNTS AND PROVIDE GUIDELINES FOR THE MAINTENANCE OF
 SUCH ACCOUNTS TO:
   1.  ENABLE  RESIDENT  VETERAN MEMBERS OF THE ORGANIZED MILITIA OF THIS
 STATE WHO WERE ON ACTIVE DUTY IN A COMBAT ZONE, DESIGNATED BY THE PRESI-
 DENT OF THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR OPERATION
 IRAQI FREEDOM, TO OBTAIN HEALTHCARE FROM THE PROVIDER OF  THEIR  CHOICE,
 WITH  FUNDS  FROM  A  NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT
 FUNDED BY THE STATE AND THE SERVICE MEMBER IN ACCORDANCE WITH THIS ARTI-
 CLE, WHEN AFTER NINETY DAYS OF MAKING APPLICATION TO  OR  ATTEMPTING  TO
 SCHEDULE  AN  APPOINTMENT  WITH  THE FEDERAL VETERANS ADMINISTRATION FOR
 SUCH CARE, THE SERVICE MEMBER IS UNABLE TO  SECURE  TIMELY  OR  ADEQUATE
 HEALTHCARE  SERVICES FOR INJURIES AND DISABILITIES SUSTAINED IN THE LINE
 OF ACTIVE DUTY IN SUCH A COMBAT ZONE, WHENEVER ORDERED INTO SUCH  COMBAT
 ZONE  FOR THREE HUNDRED SIXTY DAYS OR MORE BY THE GOVERNOR, THE COMMAND-
 ING GENERAL OF THE NEW YORK ARMY NATIONAL GUARD, THE COMMANDING  OFFICER
 OF  THE  NEW  YORK  AIR  NATIONAL GUARD OR THE COMMANDING OFFICER OF THE
 NAVAL MILITIA;
   2. PROVIDE FUNDING FROM THE STATE FOR NEW YORK COMBAT VETERANS HEALTH-
 CARE CHOICE ACCOUNTS IN AN AMOUNT OF UP TO  FIVE  THOUSAND  DOLLARS  PER
 CALENDAR YEAR FOR A PERIOD NOT TO EXCEED THREE YEARS, WHEN IN ACCORDANCE
 WITH  THIS  ARTICLE, A QUALIFIED STATE RESIDENT COMBAT VETERAN IS UNABLE

 S. 2096--D                          4

 TO SECURE HEALTHCARE SERVICES WITHIN NINETY DAYS OF  MAKING  APPLICATION
 OR  SCHEDULING  AN  APPOINTMENT  TO  MAKE  SUCH  AN APPLICATION FOR SUCH
 SERVICES FROM THE FEDERAL VETERANS ADMINISTRATION; AND
   3.  TO  CREATE  A  STATE  PERSONAL  INCOME  TAX  DEDUCTION FOR AMOUNTS
 CONTRIBUTED BY QUALIFIED RESIDENT COMBAT VETERANS TO A NEW  YORK  COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT IN AN AMOUNT NOT TO EXCEED FIVE THOU-
 SAND DOLLARS PER CALENDAR YEAR AS PROVIDED IN THIS ARTICLE.
   § 402. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "ACCOUNT"  OR "NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT"
 SHALL MEAN AN INDIVIDUAL SAVINGS ACCOUNT ESTABLISHED IN ACCORDANCE  WITH
 THE PROVISIONS OF THIS ARTICLE.
   2.  "ACCOUNT  OWNER"  SHALL  MEAN  A PERSON WHO ENTERS INTO A NEW YORK
 COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT  AGREEMENT  PURSUANT  TO  THE
 PROVISIONS  OF  THIS ARTICLE, INCLUDING A PERSON WHO ENTERS INTO SUCH AN
 AGREEMENT AS A FIDUCIARY OR AGENT ON BEHALF OF A TRUST, ESTATE, PARTNER-
 SHIP, ASSOCIATION, COMPANY OR CORPORATION. THE ACCOUNT OWNER MAY ALSO BE
 THE DESIGNATED BENEFICIARY OF THE ACCOUNT.
   3. "DESIGNATED BENEFICIARY" SHALL MEAN, WITH RESPECT TO AN ACCOUNT  OR
 ACCOUNTS,  THE  INDIVIDUAL DESIGNATED AS THE INDIVIDUAL WHOSE HEALTHCARE
 EXPENSES ARE EXPECTED TO BE PAID FROM THE ACCOUNT OR ACCOUNTS.
   4. "FINANCIAL ORGANIZATION" SHALL MEAN AN ORGANIZATION  AUTHORIZED  TO
 DO  BUSINESS IN THE STATE OF NEW YORK AND (A) IS AN AUTHORIZED FIDUCIARY
 TO ACT AS A TRUSTEE PURSUANT TO THE PROVISIONS OF  AN  ACT  OF  CONGRESS
 ENTITLED  "EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT  OF 1974" AS SUCH
 PROVISIONS MAY BE AMENDED FROM TIME TO TIME, OR  AN  INSURANCE  COMPANY;
 AND  (B)(I)  IS  LICENSED  OR  CHARTERED  BY THE DEPARTMENT OF FINANCIAL
 SERVICES, (II) IS CHARTERED BY AN  AGENCY  OF  THE  FEDERAL  GOVERNMENT,
 (III)  IS  SUBJECT  TO THE JURISDICTION AND REGULATION OF THE SECURITIES
 AND EXCHANGE COMMISSION OF THE FEDERAL GOVERNMENT, OR (IV) IS ANY  OTHER
 ENTITY  OTHERWISE  AUTHORIZED  TO  ACT  IN  THIS STATE AS A TRUSTEE OF A
 HEALTH SAVINGS ACCOUNT PURSUANT TO THE PROVISIONS OF AN ACT OF  CONGRESS
 ENTITLED THE "MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION
 ACT", AS SUCH PROVISIONS MAY BE AMENDED FROM TIME TO TIME.
   5.  "ELIGIBLE  HEALTHCARE  INSTITUTION"  SHALL  MEAN  ANY  INSTITUTION
 LICENSED, CERTIFIED OR AUTHORIZED BY THE  STATE  TO  PROVIDE  HEALTHCARE
 SERVICES.
   6. "MEMBER OF FAMILY" SHALL MEAN A FAMILY MEMBER AS DEFINED IN SECTION
 529 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.
   7. "PROGRAM" SHALL MEAN THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
   8.  "QUALIFIED  HEALTHCARE  EXPENSES"  SHALL  MEAN ANY MEDICAL EXPENSE
 DEDUCTIBLE ON FEDERAL INCOME TAXES.
   9. "QUALIFIED STATE SERVICE" SHALL MEAN ACTIVE DUTY  SERVICE  RENDERED
 WHILE  BEING  ORDERED INTO A COMBAT ZONE, DESIGNATED BY THE PRESIDENT OF
 THE UNITED STATES DURING OPERATION ENDURING FREEDOM OR  OPERATION  IRAQI
 FREEDOM,  FOR  THREE  HUNDRED  SIXTY  DAYS  OR MORE BY THE GOVERNOR, THE
 COMMANDING GENERAL OF THE NEW YORK ARMY NATIONAL GUARD,  THE  COMMANDING
 OFFICER  OF THE NEW YORK AIR NATIONAL GUARD OR THE COMMANDING OFFICER OF
 THE NAVAL MILITIA.
   10. "QUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN ACCOUNT  TO
 PAY  THE QUALIFIED HEALTHCARE EXPENSES OF A SERVICE MEMBER OR DESIGNATED
 BENEFICIARY OF AN ACCOUNT AT AN ELIGIBLE HEALTHCARE INSTITUTION.
   11. "NONQUALIFIED WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN  ACCOUNT
 WHICH IS NOT:
   A. A QUALIFIED WITHDRAWAL; OR

 S. 2096--D                          5
 
   B.  A  WITHDRAWAL MADE AS THE RESULT OF THE DEATH OR DISABILITY OF THE
 DESIGNATED BENEFICIARY OF THE ACCOUNT.
   12. "DIVISION" SHALL MEAN THE DIVISION OF MILITARY AND NAVAL AFFAIRS.
   13. "COMPTROLLER" SHALL MEAN THE STATE COMPTROLLER.
   14.  "MANAGEMENT  CONTRACT"  SHALL  MEAN  THE CONTRACT EXECUTED BY THE
 COMPTROLLER AND A FINANCIAL ORGANIZATION SELECTED TO ACT AS A DEPOSITORY
 AND MANAGER OF THE PROGRAM.
   15. "NEW YORK COMBAT VETERANS  HEALTHCARE  CHOICE  ACCOUNT  AGREEMENT"
 SHALL MEAN AN AGREEMENT BETWEEN THE COMPTROLLER OR A FINANCIAL ORGANIZA-
 TION AND AN ACCOUNT OWNER.
   16.  "PROGRAM MANAGER" SHALL MEAN A FINANCIAL ORGANIZATION SELECTED BY
 THE COMPTROLLER TO ACT AS DEPOSITORY AND MANAGER OF THE PROGRAM.
   § 403. FUNCTIONS OF THE COMPTROLLER AND THE  DIVISION.  1.  THE  COMP-
 TROLLER AND THE DIVISION SHALL IMPLEMENT THE PROGRAM UNDER THE TERMS AND
 CONDITIONS ESTABLISHED BY THIS ARTICLE AND A MEMORANDUM OF UNDERSTANDING
 RELATING TO ANY TERMS OR CONDITIONS NOT OTHERWISE EXPRESSLY PROVIDED FOR
 IN THIS ARTICLE.
   2. IN FURTHERANCE OF SUCH IMPLEMENTATION THE MEMORANDUM OF UNDERSTAND-
 ING  SHALL  ADDRESS  THE AUTHORITY AND RESPONSIBILITY OF THE COMPTROLLER
 AND THE DIVISION TO:
   A. DEVELOP AND IMPLEMENT THE PROGRAM IN A MANNER CONSISTENT  WITH  THE
 PROVISIONS  OF THIS ARTICLE THROUGH RULES AND REGULATIONS ESTABLISHED IN
 ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT;
   B. ENGAGE THE SERVICES OF CONSULTANTS ON A CONTRACT BASIS FOR  RENDER-
 ING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
   C.  SEEK  RULINGS AND OTHER GUIDANCE FROM THE UNITED STATES DEPARTMENT
 OF TREASURY AND THE INTERNAL REVENUE SERVICE RELATING TO THE PROGRAM;
   D. MAKE CHANGES TO THE PROGRAM REQUIRED FOR THE  PARTICIPANTS  IN  THE
 PROGRAM  TO OBTAIN THE FEDERAL INCOME TAX BENEFITS OR TREATMENT PROVIDED
 FOR HEALTH SAVINGS ACCOUNTS;
   E. CHARGE, IMPOSE AND COLLECT ADMINISTRATIVE FEES AND SERVICE  CHARGES
 IN  CONNECTION  WITH  ANY AGREEMENT, CONTRACT OR TRANSACTION RELATING TO
 THE PROGRAM;
   F. DEVELOP MARKETING PLANS AND PROMOTION MATERIAL;
   G. ESTABLISH THE METHODS BY WHICH THE FUNDS HELD IN SUCH  ACCOUNTS  BE
 DISPERSED;
   H.  ESTABLISH  THE METHOD BY WHICH FUNDS SHALL BE ALLOCATED TO PAY FOR
 ADMINISTRATIVE COSTS; AND
   I. DO ALL THINGS NECESSARY AND PROPER TO CARRY  OUT  THE  PURPOSES  OF
 THIS ARTICLE.
   §  404.  PROGRAM  REQUIREMENTS;  NEW  YORK  COMBAT VETERANS HEALTHCARE
 CHOICE ACCOUNT. 1. NEW YORK COMBAT VETERANS HEALTHCARE  CHOICE  ACCOUNTS
 ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS ARTICLE SHALL BE GOVERNED
 BY THE PROVISIONS OF THIS SECTION.
   2.  A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT MAY BE OPENED
 BY ANY PERSON WHO DESIRES TO SAVE MONEY FOR THE PAYMENT OF THE QUALIFIED
 HEALTHCARE EXPENSES OF THE DESIGNATED BENEFICIARY. AN ACCOUNT OWNER  MAY
 DESIGNATE  ANOTHER  QUALIFIED  SERVICE  MEMBER AS SUCCESSOR OWNER OF THE
 ACCOUNT IN THE EVENT OF THE DEATH OF THE ORIGINAL  ACCOUNT  OWNER.  SUCH
 PERSON  WHO  OPENS AN ACCOUNT OR ANY SUCCESSOR OWNER SHALL BE CONSIDERED
 THE ACCOUNT OWNER.
   A. AN APPLICATION FOR SUCH ACCOUNT SHALL BE IN THE FORM PRESCRIBED  BY
 THE PROGRAM AND CONTAIN THE FOLLOWING:
   (I) THE NAME, ADDRESS AND SOCIAL SECURITY NUMBER OR EMPLOYER IDENTIFI-
 CATION NUMBER OF THE ACCOUNT OWNER;
   (II) THE DESIGNATION OF A DESIGNATED BENEFICIARY;

 S. 2096--D                          6
 
   (III)  THE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OF THE DESIGNATED
 BENEFICIARY; AND
   (IV) SUCH OTHER INFORMATION AS THE PROGRAM MAY REQUIRE.
   B.  THE  COMPTROLLER  AND THE DIVISION MAY ESTABLISH A NOMINAL FEE FOR
 SUCH APPLICATION.
   3. ANY PERSON, INCLUDING THE ACCOUNT OWNER, MAY MAKE CONTRIBUTIONS  TO
 THE ACCOUNT AFTER THE ACCOUNT IS OPENED.
   4. CONTRIBUTIONS TO ACCOUNTS MAY BE MADE ONLY IN CASH.
   5.  AN ACCOUNT OWNER MAY MAKE A QUALIFIED WITHDRAWAL OF ALL OR PART OF
 THE BALANCE FROM AN ACCOUNT ON SIXTY DAYS NOTICE OR SUCH SHORTER  PERIOD
 AS MAY BE AUTHORIZED UNDER RULES GOVERNING THE PROGRAM. SUCH RULES SHALL
 INCLUDE  PROVISIONS  THAT  WILL GENERALLY ENABLE THE DETERMINATION AS TO
 WHETHER A WITHDRAWAL IS A NONQUALIFIED WITHDRAWAL OR A  QUALIFIED  WITH-
 DRAWAL.
   6.  AN  ACCOUNT  OWNER  MAY  CHANGE  THE  DESIGNATED BENEFICIARY OF AN
 ACCOUNT TO A SERVICE MEMBER WHO IS A MEMBER OF THE FAMILY OF  THE  PRIOR
 DESIGNATED  BENEFICIARY IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE
 MEMORANDUM OF UNDERSTANDING PURSUANT TO THE PROVISIONS OF  SECTION  FOUR
 HUNDRED THREE OF THIS ARTICLE.
   7.  THE  PROGRAM SHALL PROVIDE SEPARATE ACCOUNTING FOR EACH DESIGNATED
 BENEFICIARY.
   8. NO ACCOUNT OWNER OR DESIGNATED BENEFICIARY OF ANY ACCOUNT SHALL  BE
 PERMITTED TO DIRECT THE INVESTMENT OF ANY CONTRIBUTIONS TO AN ACCOUNT OR
 THE EARNINGS THEREON MORE THAN TWO TIMES IN ANY CALENDAR YEAR.
   9.  NEITHER  AN  ACCOUNT OWNER NOR A DESIGNATED BENEFICIARY MAY USE AN
 INTEREST IN AN ACCOUNT AS SECURITY FOR A LOAN. ANY PLEDGE OF AN INTEREST
 IN AN ACCOUNT SHALL BE OF NO FORCE AND EFFECT.
   10. THE COMPTROLLER SHALL PROMULGATE RULES OR REGULATIONS  TO  PREVENT
 CONTRIBUTIONS  ON  BEHALF  OF  A  DESIGNATED BENEFICIARY IN EXCESS OF AN
 AMOUNT THAT WOULD CAUSE THE AGGREGATE ACCOUNT BALANCE FOR  ALL  ACCOUNTS
 FOR  A  DESIGNATED  BENEFICIARY  TO EXCEED A MAXIMUM ACCOUNT BALANCE, AS
 ESTABLISHED FROM TIME TO TIME BY THE COMPTROLLER AND THE DIVISION ON THE
 BASIS OF HEALTHCARE COSTS IN THE  STATE,  WITH  ADEQUATE  SAFEGUARDS  TO
 PREVENT  MORE  CONTRIBUTIONS THAN NECESSARY TO PROVIDE FOR THE QUALIFIED
 HEALTHCARE COSTS OF THE BENEFICIARY, AS REQUIRED TO MAINTAIN THE PROGRAM
 AS A "QUALIFIED HEALTH SAVINGS PROGRAM" PURSUANT TO FEDERAL LAW.
   11. A. IF THERE IS ANY DISTRIBUTION FROM AN ACCOUNT TO ANY  INDIVIDUAL
 OR  FOR  THE  BENEFIT  OF  ANY  INDIVIDUAL  DURING A CALENDAR YEAR, SUCH
 DISTRIBUTION SHALL BE REPORTED TO THE INTERNAL REVENUE SERVICE  AND  THE
 ACCOUNT  OWNER,  THE  DESIGNATED  BENEFICIARY, OR THE DISTRIBUTEE TO THE
 EXTENT REQUIRED BY FEDERAL LAW OR REGULATION.
   B. STATEMENTS SHALL BE PROVIDED TO EACH ACCOUNT OWNER  AT  LEAST  ONCE
 EACH  YEAR WITHIN SIXTY DAYS AFTER THE END OF THE TWELVE MONTH PERIOD TO
 WHICH THEY RELATE. THE STATEMENT SHALL IDENTIFY THE  CONTRIBUTIONS  MADE
 DURING  A PRECEDING TWELVE MONTH PERIOD, THE TOTAL CONTRIBUTIONS MADE TO
 THE ACCOUNT THROUGH THE END OF THE PERIOD, THE VALUE OF THE  ACCOUNT  AT
 THE  END  OF  SUCH PERIOD, DISTRIBUTIONS MADE DURING SUCH PERIOD AND ANY
 OTHER INFORMATION THAT THE COMPTROLLER SHALL REQUIRE TO BE  REPORTED  TO
 THE ACCOUNT OWNER.
   C.  STATEMENTS  AND INFORMATION RELATING TO ACCOUNTS SHALL BE PREPARED
 AND FILED TO THE EXTENT REQUIRED BY FEDERAL AND STATE TAX LAW.
   12. A.  A  LOCAL  GOVERNMENT  OR  ORGANIZATION  DESCRIBED  IN  SECTION
 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, MAY OPEN AND
 BECOME  THE  ACCOUNT  OWNER  OF  AN ACCOUNT TO FUND QUALIFIED HEALTHCARE
 EXPENSES FOR PERSONS WHOSE IDENTITY WILL BE  DETERMINED  UPON  DISBURSE-
 MENT.

 S. 2096--D                          7

   B.  IN  THE CASE OF ANY ACCOUNT OPENED PURSUANT TO PARAGRAPH A OF THIS
 SUBDIVISION THE REQUIREMENT SET FORTH IN SUBDIVISION TWO OF THIS SECTION
 THAT A DESIGNATED BENEFICIARY BE DESIGNATED WHEN AN  ACCOUNT  IS  OPENED
 SHALL  NOT  APPLY  AND  EACH INDIVIDUAL WHO RECEIVES AN INTEREST IN SUCH
 ACCOUNT  AS  A  QUALIFIED HEALTHCARE EXPENSE GRANT SHALL BE TREATED AS A
 DESIGNATED BENEFICIARY WITH RESPECT TO SUCH INTEREST.
   13. AN ANNUAL FEE MAY BE IMPOSED UPON THE ACCOUNT OWNER FOR THE  MAIN-
 TENANCE OF THE ACCOUNT.
   14. THE PROGRAM SHALL DISCLOSE THE FOLLOWING INFORMATION IN WRITING TO
 EACH  ACCOUNT  OWNER  AND PROSPECTIVE ACCOUNT OWNER OF A NEW YORK COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT:
   A. THE TERMS AND CONDITIONS FOR PURCHASING A NEW YORK COMBAT  VETERANS
 HEALTHCARE CHOICE ACCOUNT;
   B. ANY RESTRICTIONS ON THE SUBSTITUTION OF BENEFICIARIES;
   C.  THE  PERSON  OR  ENTITY  ENTITLED TO TERMINATE THE NEW YORK COMBAT
 VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   D. THE PERIOD OF TIME DURING WHICH A BENEFICIARY MAY RECEIVE  BENEFITS
 UNDER THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNT AGREEMENT;
   E.  THE  TERMS  AND  CONDITIONS  UNDER  WHICH  MONEY  MAY BE WHOLLY OR
 PARTIALLY WITHDRAWN FROM THE PROGRAM, INCLUDING, BUT NOT LIMITED TO, ANY
 REASONABLE CHARGES AND FEES THAT MAY BE IMPOSED FOR WITHDRAWAL;
   F. THE PROBABLE TAX CONSEQUENCES ASSOCIATED WITH CONTRIBUTIONS TO  AND
 DISTRIBUTIONS FROM ACCOUNTS; AND
   G. ALL OTHER RIGHTS AND OBLIGATIONS PURSUANT TO NEW YORK COMBAT VETER-
 ANS  HEALTHCARE  CHOICE  ACCOUNT AGREEMENTS, AND ANY OTHER TERMS, CONDI-
 TIONS, AND PROVISIONS DEEMED NECESSARY AND APPROPRIATE BY THE  TERMS  OF
 THE  MEMORANDUM  OF  UNDERSTANDING ENTERED INTO PURSUANT TO SECTION FOUR
 HUNDRED THREE OF THIS ARTICLE.
   15. NEW YORK COMBAT  VETERANS  HEALTHCARE  CHOICE  ACCOUNT  AGREEMENTS
 SHALL  BE  SUBJECT  TO  SECTION  FOURTEEN-C  OF  THE BANKING LAW AND THE
 "TRUTH-IN-SAVINGS" REGULATIONS PROMULGATED THEREUNDER.
   16. NOTHING IN THIS ARTICLE OR IN ANY NEW YORK COMBAT VETERANS HEALTH-
 CARE CHOICE ACCOUNT AGREEMENT ENTERED  INTO  PURSUANT  TO  THIS  ARTICLE
 SHALL BE CONSTRUED AS A GUARANTEE BY THE STATE OR ANY HEALTHCARE PROVID-
 ER  THAT A BENEFICIARY WILL BE ADMITTED TO AN ELIGIBLE HEALTHCARE INSTI-
 TUTION, OR, UPON ADMISSION TO AN ELIGIBLE HEALTHCARE INSTITUTION WILL BE
 PERMITTED TO REMAIN IN SUCH ELIGIBLE HEALTHCARE INSTITUTION.
   § 405. PROGRAM LIMITATIONS; NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT. 1. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO:
   A. GIVE ANY DESIGNATED BENEFICIARY ANY RIGHTS OR LEGAL  INTEREST  WITH
 RESPECT  TO  AN ACCOUNT UNLESS THE DESIGNATED BENEFICIARY IS THE ACCOUNT
 OWNER;
   B. GUARANTEE THAT A DESIGNATED BENEFICIARY  WILL  BE  ADMITTED  TO  AN
 ELIGIBLE HEALTHCARE INSTITUTION;
   C.  CREATE  STATE RESIDENCY FOR AN INDIVIDUAL MERELY BECAUSE THE INDI-
 VIDUAL IS A DESIGNATED BENEFICIARY; OR
   D. GUARANTEE THAT AMOUNTS SAVED PURSUANT TO THE PROGRAM WILL BE SUFFI-
 CIENT TO COVER THE QUALIFIED HEALTHCARE EXPENSES OF A DESIGNATED BENEFI-
 CIARY.
   2. A. NOTHING IN THIS ARTICLE SHALL CREATE OR BE CONSTRUED  TO  CREATE
 ANY  OBLIGATION  OF THE COMPTROLLER, THE STATE, OR ANY AGENCY OR INSTRU-
 MENTALITY OF THE STATE TO GUARANTEE FOR THE BENEFIT OF ANY ACCOUNT OWNER
 OR DESIGNATED BENEFICIARY WITH RESPECT TO:
   (I) THE RATE OF INTEREST OR OTHER RETURN ON ANY ACCOUNT; AND
   (II) THE PAYMENT OF INTEREST OR OTHER RETURN ON ANY ACCOUNT.

 S. 2096--D                          8

   B. THE COMPTROLLER AND  THE  DIVISION  BY  RULE  OR  REGULATION  SHALL
 PROVIDE THAT EVERY CONTRACT, APPLICATION, DEPOSIT SLIP, OR OTHER SIMILAR
 DOCUMENT  THAT  MAY  BE  USED  IN  CONNECTION  WITH A CONTRIBUTION TO AN
 ACCOUNT CLEARLY INDICATE THAT THE ACCOUNT IS NOT INSURED  BY  THE  STATE
 AND NEITHER THE PRINCIPAL DEPOSITED NOR THE INVESTMENT RETURN IS GUARAN-
 TEED BY THE STATE.
   §  4.  The  state finance law is amended by adding a new section 82 to
 read as follows:
   § 82. NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM  TRUST  FUND.
 1.  THERE  IS  HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE STATE COMP-
 TROLLER A SPECIAL FUND TO BE KNOWN  AS  THE  NEW  YORK  COMBAT  VETERANS
 HEALTHCARE  CHOICE PROGRAM TRUST FUND. ALL PAYMENTS FROM SUCH FUND SHALL
 BE MADE IN ACCORDANCE WITH ARTICLE FOURTEEN OF THE MILITARY LAW AND  THE
 MEMORANDUM  OF  UNDERSTANDING ENTERED INTO PURSUANT THERETO ON THE AUDIT
 OF THE STATE COMPTROLLER.
   2. THE FUND SHALL BE A TRUST FUND AND SHALL CONSIST OF A TRUST ACCOUNT
 AND AN OPERATING  ACCOUNT.  THE  TRUST  ACCOUNT  SHALL  INCLUDE  AMOUNTS
 RECEIVED  BY  THE  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE PROGRAM
 PURSUANT TO NEW YORK COMBAT VETERANS HEALTHCARE  CHOICE  ACCOUNT  AGREE-
 MENTS,  ADMINISTRATIVE  CHARGES, FEES, AND ALL OTHER AMOUNTS RECEIVED BY
 THE PROGRAM FROM OTHER  SOURCES,  AND  INTEREST  AND  INVESTMENT  INCOME
 EARNED BY THE TRUST FUND. THE COMPTROLLER SHALL, FROM TIME TO TIME, MAKE
 TRANSFERS  FROM THE TRUST ACCOUNT TO THE OPERATING ACCOUNT FOR THE IMME-
 DIATE PAYMENT OF OBLIGATIONS UNDER NEW YORK COMBAT  VETERANS  HEALTHCARE
 CHOICE  ACCOUNT  AGREEMENTS, OPERATING EXPENSES AND ADMINISTRATIVE COSTS
 OF THE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE  ACCOUNT.  ADMINISTRA-
 TIVE  COSTS  SHALL BE PAID OUT OF THE OPERATING ACCOUNT ACCORDING TO THE
 TERMS AND CONDITIONS ESTABLISHED PURSUANT TO THE PROVISIONS  OF  SECTION
 FOUR HUNDRED THREE OF THE MILITARY LAW.
   3.  (A)  THE  COMPTROLLER,  AS TRUSTEE, SHALL INVEST THE ASSETS OF THE
 TRUST FUND IN INVESTMENTS AUTHORIZED BY ARTICLE FOUR-A OF THE RETIREMENT
 AND SOCIAL SECURITY LAW, PROVIDED HOWEVER, THAT:
   (I) THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION  ONE
 HUNDRED  SEVENTY-SEVEN  OF  THE RETIREMENT AND SOCIAL SECURITY LAW SHALL
 NOT APPLY EXCEPT FOR THE FIRST CLAUSE OF SUBPARAGRAPH (II) OF SUCH PARA-
 GRAPH; AND
   (II) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION  SEVEN  OF  SECTION
 ONE  HUNDRED  SEVENTY-SEVEN OF THE RETIREMENT AND SOCIAL SECURITY LAW OR
 ANY OTHER LAW TO THE CONTRARY, THE ASSETS  OF  THE  TRUST  FUND  MAY  BE
 INVESTED  IN  ANY  FUNDING  AGREEMENT  ISSUED IN ACCORDANCE WITH SECTION
 THREE THOUSAND TWO HUNDRED TWENTY-TWO OF THE INSURANCE LAW BY A DOMESTIC
 LIFE INSURANCE COMPANY OR A FOREIGN LIFE INSURANCE COMPANY  DOING  BUSI-
 NESS IN THIS STATE, SUBJECT TO THE FOLLOWING:
   (1) SUCH A FUNDING AGREEMENT MAY PROVIDE FOR A GUARANTEED MINIMUM RATE
 OF RETURN;
   (2)  SUCH  A  FUNDING  AGREEMENT MAY BE ALLOCATED AS EITHER A SEPARATE
 ACCOUNT OR A GENERAL ACCOUNT OF  THE  ISSUER,  AS  THE  COMPTROLLER  MAY
 DECIDE;
   (3)  TOTAL INVESTMENTS OF THE TRUST FUND PURSUANT TO THIS PARAGRAPH IN
 ANY FUNDING AGREEMENTS ISSUED BY A SINGLE LIFE INSURANCE  COMPANY  WHICH
 ARE  ALLOCATED  AS  A  GENERAL  ACCOUNT  OF THE ISSUER SHALL NOT, IN THE
 AGGREGATE, EXCEED THREE HUNDRED FIFTY MILLION DOLLARS; AND
   (4) NO ASSETS OF THE TRUST FUND SHALL BE INVESTED IN ANY SUCH  FUNDING
 AGREEMENT  UNLESS,  AT  THE  TIME  OF SUCH INVESTMENT, THE GENERAL OBLI-
 GATIONS OR FINANCIAL STRENGTH OF THE ISSUER  HAVE  RECEIVED  EITHER  THE
 HIGHEST  OR  SECOND  HIGHEST  RATING BY TWO NATIONALLY RECOGNIZED RATING

 S. 2096--D                          9
 
 SERVICES OR BY ONE NATIONALLY RECOGNIZED RATING  SERVICE  IN  THE  EVENT
 THAT ONLY ONE SUCH SERVICE RATES SUCH OBLIGATIONS.
   (B)  TRUST FUND ASSETS SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMIN-
 GLED WITH OTHER ASSETS, EXCEPT AS PROVIDED IN THIS  SECTION.  THE  COMP-
 TROLLER  MAY  ENTER  INTO CONTRACTS TO PROVIDE FOR INVESTMENT ADVICE AND
 MANAGEMENT, CUSTODIAL SERVICES, AND OTHER PROFESSIONAL SERVICES FOR  THE
 ADMINISTRATION AND INVESTMENT OF THE PROGRAM. ADMINISTRATIVE FEES, COSTS
 AND EXPENSES, INCLUDING INVESTMENT FEES AND EXPENSES, SHALL BE PAID FROM
 THE ASSETS OF THE FUND.
   4.  THE  COMPTROLLER SHALL PROVIDE FOR THE ADMINISTRATION OF THE TRUST
 FUND,  INCLUDING  MAINTAINING  PARTICIPANT  RECORDS  AND  ACCOUNTS,  AND
 PROVIDING  ANNUAL  AUDITED  REPORTS.  THE  COMPTROLLER  MAY  ENTER  INTO
 CONTRACTS TO PROVIDE ADMINISTRATIVE SERVICES AND REPORTING.
   § 5. Section 5205 of the civil practice law and rules  is  amended  by
 adding a new subdivision (p) to read as follows:
   (P)  EXEMPTION  FOR NEW YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
 TRUST FUND PAYMENT MONIES. MONIES IN  AN  ACCOUNT  CREATED  PURSUANT  TO
 ARTICLE  FOURTEEN OF THE MILITARY LAW ARE EXEMPT FROM APPLICATION TO THE
 SATISFACTION OF A MONEY JUDGMENT.
   § 6. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 43 to read as follows:
   (43) DISTRIBUTIONS RECEIVED DURING THE TAXABLE YEAR BY A  DISTRIBUTION
 OF  A  NEW  YORK  COMBAT  VETERANS HEALTHCARE CHOICE ACCOUNT ESTABLISHED
 PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW,  TO  THE  EXTENT  SUCH
 DISTRIBUTIONS ARE NOT QUALIFIED WITHDRAWALS WITHIN THE MEANING OF SUBDI-
 VISION TEN OF SECTION FOUR HUNDRED TWO OF THE MILITARY LAW.
   § 7. Subsection (c) of section 612 of the tax law is amended by adding
 two new paragraphs 44 and 45 to read as follows:
   (44) CONTRIBUTIONS MADE DURING THE TAXABLE YEAR BY AN ACCOUNT OWNER TO
 ONE  OR  MORE NEW YORK COMBAT VETERANS HEALTHCARE CHOICE ACCOUNTS ESTAB-
 LISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO  THE  EXTENT
 NOT  DEDUCTIBLE  OR ELIGIBLE FOR CREDIT FOR FEDERAL INCOME TAX PURPOSES,
 PROVIDED, HOWEVER, THE EXCLUSION PROVIDED FOR IN  THIS  PARAGRAPH  SHALL
 NOT EXCEED FIVE THOUSAND DOLLARS FOR AN INDIVIDUAL OR HEAD OF HOUSEHOLD,
 AND FOR MARRIED COUPLES WHO FILE JOINT TAX RETURNS, SHALL NOT EXCEED TEN
 THOUSAND DOLLARS; PROVIDED, FURTHER, THAT SUCH EXCLUSION SHALL BE AVAIL-
 ABLE ONLY TO THE ACCOUNT OWNER AND NOT TO ANY OTHER PERSON.
   (45)  DISTRIBUTIONS  FROM A NEW YORK COMBAT VETERANS HEALTHCARE CHOICE
 ACCOUNT ESTABLISHED PURSUANT TO ARTICLE FOURTEEN OF THE MILITARY LAW, TO
 THE EXTENT INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES.
   § 8. Subsection (d) of section 658 of the tax law is amended by adding
 a new paragraph 4 to read as follows:
   (4) THE COMMISSIONER MAY BY  REGULATION  OR  INSTRUCTION  REQUIRE  THE
 FILING OF A REPORT ANNUALLY BY THE COMPTROLLER OR PROGRAM MANAGER OF THE
 NEW   YORK COMBAT VETERANS HEALTHCARE CHOICE PROGRAM, OR THEIR DESIGNEE,
 SETTING FORTH THE NAMES AND IDENTIFICATION NUMBERS  OF  ACCOUNT  OWNERS,
 DESIGNATED  BENEFICIARIES  AND  DISTRIBUTEES OF NEW YORK COMBAT VETERANS
 HEALTHCARE CHOICE PROGRAM ACCOUNTS,  THE  AMOUNTS  CONTRIBUTED  TO  SUCH
 ACCOUNTS,  THE  AMOUNTS DISTRIBUTED FROM SUCH ACCOUNTS AND THE NATURE OF
 SUCH DISTRIBUTIONS AS QUALIFIED WITHDRAWALS OR AS WITHDRAWALS OTHER THAN
 QUALIFIED WITHDRAWALS, AND ANY SUCH OTHER INFORMATION AS THE COMMISSION-
 ER MAY REQUIRE REGARDING THE TAXATION  UNDER  THIS  ARTICLE  OF  AMOUNTS
 CONTRIBUTED  TO  OR  WITHDRAWN  FROM SUCH ACCOUNTS. THE COMMISSIONER MAY
 REQUIRE THAT ANY SUCH REPORT ALSO BE MADE TO THE ACCOUNT  OWNER,  DESIG-
 NATED BENEFICIARY OR DISTRIBUTEE OF ANY SUCH ACCOUNT.

 S. 2096--D                         10
 
   §  9.  Section  190  of  the  executive law is amended by adding a new
 subdivision 6 to read as follows:
   6.  THE  DIVISION  OF  MILITARY  AND NAVAL AFFAIRS SHALL ESTABLISH AND
 MAINTAIN A VOLUNTARY REGISTRY  OF  STATE  RESIDENTS  WHO  ARE  HONORABLY
 DISCHARGED  VETERANS  OF  THE ARMED FORCES OF THE UNITED STATES, AND WHO
 SERVED ON REGULAR ACTIVE DUTY (OTHER THAN FOR TRAINING) DURING  PART  OF
 ONE OF THE FOLLOWING PERIODS:
   (A)  FROM  SEPTEMBER EIGHTEENTH, TWO THOUSAND ONE UNTIL THE END OF THE
 UNITED STATES MILITARY EFFORTS IN AFGHANISTAN; OR
   (B) FROM OCTOBER SIXTEENTH, TWO THOUSAND TWO  UNTIL  THE  END  OF  THE
 UNITED STATES MILITARY EFFORTS IN IRAQ.
   THE INFORMATION IN SUCH REGISTRY SHALL BE DEEMED CONFIDENTIAL, AND MAY
 ONLY  BE  ACCESSED  BY  SUCH VETERAN FOR PURPOSES OF PROOF OF HIS OR HER
 MILITARY SERVICE.
   § 10. This act shall take effect immediately and shall apply to  taxa-
 ble years beginning after December 31, 2018.

Senate Bill S2096

Sponsored By

Archive: Last Bill Status - In Senate Committee Veterans, Homeland Security And Military Affairs Committee

Mar 27, 2017 - Veterans, Homeland Security And Military Affairs Committee Vote

Veterans, Homeland Security And Military Affairs Committee Vote: Mar 27, 2017

Bill Amendments

co-Sponsors

2017-S2096 - Details

2017-S2096 - Summary

2017-S2096 - Sponsor Memo

2017-S2096 - Bill Text download pdf

co-Sponsors

2017-S2096A - Details

2017-S2096A - Summary

2017-S2096A - Sponsor Memo

2017-S2096A - Bill Text download pdf

co-Sponsors

2017-S2096B - Details

2017-S2096B - Summary

2017-S2096B - Sponsor Memo

2017-S2096B - Bill Text download pdf

co-Sponsors

2017-S2096C - Details

2017-S2096C - Summary

2017-S2096C - Sponsor Memo

2017-S2096C - Bill Text download pdf

co-Sponsors

2017-S2096D (ACTIVE) - Details

2017-S2096D (ACTIVE) - Summary

2017-S2096D (ACTIVE) - Sponsor Memo

2017-S2096D (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2096

Share this bill

Sponsored By

Archive: Last Bill Status - In Senate Committee Veterans, Homeland Security And Military Affairs Committee

Bill Amendments

co-Sponsors

2017-S2096 - Details

2017-S2096 - Summary

2017-S2096 - Sponsor Memo

2017-S2096 - Bill Text download pdf

co-Sponsors

2017-S2096A - Details

2017-S2096A - Summary

2017-S2096A - Sponsor Memo

2017-S2096A - Bill Text download pdf

co-Sponsors

2017-S2096B - Details

2017-S2096B - Summary

2017-S2096B - Sponsor Memo

2017-S2096B - Bill Text download pdf

co-Sponsors

2017-S2096C - Details

2017-S2096C - Summary

2017-S2096C - Sponsor Memo

2017-S2096C - Bill Text download pdf

co-Sponsors

2017-S2096D (ACTIVE) - Details

2017-S2096D (ACTIVE) - Summary

2017-S2096D (ACTIVE) - Sponsor Memo

2017-S2096D (ACTIVE) - Bill Text download pdf

Comments